Apollo Global has agreed to buy European budget airline easyJet in a deal that values the carrier at about £5.70 n ($7.7bn), the companies said on Thursday, as rival suitor Castlelake abandoned its pursuit, reports Reuters.
The deal ends months of uncertainty surrounding one of Europe's biggest low-cost airlines as the industry grapples with rising costs from the Iran war.
Castlelake earlier on Thursday withdrew from the takeover race without giving a reason.
Castlelake had tabled five bids for easyJet before Apollo entered the fray in July, topping Castlelake's £5.5bn proposal and securing the backing of the airline's board.
Following the deal, Apollo anticipates that the family of easyJet founder Stelios Haji-Ioannou and other shareholders remaining invested will hold between 45.1% and 49.9% of the ordinary capital of the purchasing vehicle.
An EU management trust will hold up to 5%, Apollo's funds will hold the rest, up to a maximum of 49.9%.
"Having carefully reviewed the proposal by Apollo, my family members and I have decided to support the recommended acquisition announced by the easyJet board," Haji-Ioannou said in a separate statement.
The £7.15 per share offer, which easyJet's board unanimously recommended, represents a premium of about 81% to easyJet's closing price of £3.94 on May 28, the last trading day before Castlelake's interest became public.
