easyJet shares soared 14% higher on Friday, trading at 671.4p, as it received a second private equity approach, with Apollo Global Management floating a possible all-cash takeover proposal, pitched at 715p per share.
It comes after icebreaker interest from Castlelake which kicked off the bidding last month.
Apollo says it intends to support easyJet's existing strategy, including fleet upgauging, expanding its ancillary and loyalty offering, and scaling its Holidays division, with the firm arguing that private ownership would accelerate management's ambitions by providing access to incremental capital and longer-term planning horizons.
The private equity firm also confirmed it has no intention of altering the brand licence agreement with easyGroup, the vehicle of founder Sir Stelios Haji-Ioannou, and expects royalties to grow as commercial initiatives take hold.
On regulatory conditions, Apollo has committed to taking "all necessary steps" to secure merger control and EU Foreign Subsidies Regulation clearances, with a "best endeavours" obligation covering other regulatory requirements.
Under the City Code on Takeovers and Mergers, Apollo must by 5.00 p.m. on 7 August either announce a firm intention to make an offer or confirm it will not proceed.
Apollo is now the preffered option
In a note, Hargreaves Lansdown analyst Aarin Chiekrie said Apollo has edged ahead of rival bidder Castlelake, which previously had an agreement in principle on a 690p cash offer, and is now the preferred option.
The analyst notes Apollo's 715p proposal marks a premium of around 22% to the prior close and that the bidder has publicly backed easyJet's fleet-upgauge and broader growth plans.
