UK easyJet Shareholders Approve Apollo's £5.7 Billion Acquisition Plan

en.Wedoany.com Reported - On November 11, shareholders of UK low-cost airline easyJet voted to approve the acquisition plan proposed by US investment firm Apollo, valuing easyJet's equity at approximately £5.7 billion. Under the cash offer of £7.15 per share, Eagle Bidco, a subsidiary of Apollo, will acquire all issued and to-be-issued ordinary shares of easyJet. The transaction is expected to complete by the end of the first quarter of 2027.

The votes were held at a court-convened shareholder meeting and the company's general meeting. At the court meeting, 97.07% of the shares voted represented support for the acquisition plan; at the subsequent general meeting, 96.67% of valid votes cast supported the implementation of the transaction and the amendment of the company's articles of association. Both votes reached the approval thresholds required by the scheme.

Under the terms of the transaction, easyJet shareholders will receive £7.15 in cash per share, or may elect to convert all of their shares into unlisted shares of a new parent company. easyJet founder Stelios Haji-Ioannou and his family have elected the share conversion option. The family held approximately 15.3% of easyJet's shares at the time the acquisition plan was announced and will continue to hold an equity interest in the business through the new holding company.

Because easyJet must comply with European airline ownership and control regulations, the transaction employs a special equity arrangement. Following completion, Apollo's funds will hold no more than 49.9% of the new parent company, the shareholder group formed by the conversion of existing shareholders' shares is expected to hold 45.1% to 49.9%, and an EU trust will be established with a maximum stake of 5%. The equity structure will be adjusted based on the final share conversion elections to meet relevant aviation regulatory requirements.

Following completion of the transaction, easyJet will be delisted from the London Stock Exchange, ending more than 25 years of listed trading history. However, the company will continue to operate as an independent airline, and its UK headquarters and the locations of its air operator's certificates in the UK, Austria and Switzerland will remain unchanged. Apollo has previously stated that it will retain the easyJet brand and will work with the existing management team to review the company's business strategy.