The takeover panel has agreed to extend the deadline for US investment fund Castlelake to consider a firm offer for UK airline EasyJet.
Castlelake’s 690p per share offer was recommended by the Easyjet board until Apollo came in with a 715p cash offer which the airline’s board has now recommended.
The regulator has now agreed to extend Castlelake’s deadline to 5pm on 7 August to align with Apollo’s deadline. EasyJet has been providing diligence access to both companies.
Apollo has confirmed that it would agree to satisfy any conditions relating to merger control and EU Foreign Subsidies Regulation clearances relating to the proposed transaction which has been seen as a sticking point to an airline acqusition.
The proposed offer made on 8 July represents a premium of 81% to the closing price of 394p at the close of business on 28 May, the last day prior to the offer from Castlelake submitted on 4 July.
Apollo will finance the deal from Apollo funds. Barclays has provided a letter to Apollo indicating that it is “highly confident” of being able to arrange the required debt financing for the offer.
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