EasyJet shareholders approve £5.7bn Apollo takeover

EasyJet shareholders have approved Apollo's £5.7bn takeover of the budget airline, clearing a key hurdle for the deal, which still requires court sanction and regulatory approvals and is expected to complete in the first quarter of 2027.

Vote results

At the court meeting, 97.07% of shares voted were in favour of the deal, with 287,233,404 votes for and 8,656,206 against. Of the 334 shareholders who voted, 289, or 83.29%, backed the deal. Shares voted represented 39.03% of eligible share capital.

At the general meeting, 96.67% of votes were in favour and 3.33% against, with 247,835,560 votes for and 8,528,763 against. A further 387,424 votes were withheld.

To comply with European ownership and control requirements, easyJet suspended voting rights at the general meeting on 233,921,894 shares held by non-EU persons. EU persons held 35.07% of easyJet's shares at the time of the meeting.

Deal terms and next steps

Eagle Bidco Ltd, a company indirectly owned by Apollo funds, and easyJet's board agreed on Aug. 6 to the terms of a recommended cash acquisition of all easyJet shares through a court-approved scheme of arrangement. The scheme document was published on Oct. 15.

The deal remains subject to other conditions, including court sanction, and a date for the hearing has not yet been set. The latest date for completion is 11.59 p.m. on Aug. 6, 2027, unless extended.

EasyJet shares are expected to be delisted from the London Stock Exchange by 8 a.m. three business days after the court hearing. Shareholders are due to receive cash within 14 calendar days of the deal taking effect.

Shareholders can elect to receive an alternative offer comprising rollover shares and loan notes. EasyJet will announce the deadline for making the election once the hearing date has been set.

Background

In August EasyJet's board agreed to Apollo's offer of 715p a share. Apollo secured the deal after winning in a takeover tussle with US investment firm Castlelake. Castlelake had previously made a £5.5bn, or 690p a share, proposal to buy EasyJet, but walked away from the bidding war in August.

EasyJet was founded by Sir Stelios Haji-Ioannou in 1995 as a low-cost air travel alternative and it has since expanded to be one of the largest networks across Europe. Sir Stelios and his family, who own just over 15% of the business, have backed the takeover.

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Sources

• ca.investing.com: EasyJet investors back Apollo buyout as deal moves closer to completion By Investing.com
• bbc.com: EasyJet shareholders approve £5.7bn takeover

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.