Castlelake abandons easyJet pursuit, clears way for £5.7bn takeover by Apollo

(Sharecast News) - US investment firm Castlelake said on Thursday that it was abandoning its pursuit of easyJet, clearing the path for a £5.7bn takeover by Apollo. "Castlelake is very appreciative of the constructive engagement with the easyJet board and management team, and would like to thank them for their time and consideration of this potential transaction," it said.

The statement from Castlelake was swiftly followed by confirmation from easyJet that it has agreed to be taken over by Apollo for 715p per share in cash.

The offer represents a premium of 81% to the closing easyJet share price on 28 May, which was the last business day before the start of the offer period relating to Castlelake.

EasyJet non-executive chair Stephen Hester said: "We have made significant progress in recent years, executing our clear strategy to deliver attractive long-term value for shareholders. We have strengthened our network, continued to improve operational performance and built a differentiated and fast-growing Holidays business while achieving strong customer satisfaction and high employee engagement.

"The easyJet board has carefully evaluated the proposal from Apollo alongside easyJet's standalone prospects. While we remain confident in the strength of our business and the opportunities ahead, we believe this offer appropriately recognises the quality of the business we have built and delivers immediate, certain and attractive value for shareholders."

At 1500 BST, shares of the budget airline were up 2.8% at 670.20p.