Bankers and advisers involved in Apollo Global Management’s £5.7bn acquisition of easyJet are expected to receive approximately £334m in fees, according to Private Equity Wire. The fee pool is described as making the transaction one of the UK’s most lucrative takeovers for dealmakers this year, according to a report by the Financial Times cited by Private Equity Wire.
Fee pool and allocation between buyer and target
Apollo is expected to pay approximately £280m in fees, including £190m associated with arranging acquisition financing, according to Private Equity Wire. easyJet is expected to pay a further £54m, Private Equity Wire reports.
Adviser line-up on both sides
Advisers to Apollo include Barclays, PJT Partners, Citigroup and law firm Paul Weiss, according to Private Equity Wire. easyJet’s advisers include Evercore, BNP Paribas, Panmure Liberum and Clifford Chance, according to Private Equity Wire.
Deal process and the take-private plan
Apollo secured the acquisition after outbidding rival private credit manager Castlelake, which had previously been in negotiations with the airline, according to Private Equity Wire. The transaction will take easyJet private after more than two decades on the stock market, Private Equity Wire reports.
Apollo is planning to reposition the business towards higher-value travel and improve its financial performance, according to Private Equity Wire.
Revised ownership structure for EU aviation rules
The proposed ownership structure has been revised to comply with EU aviation regulations requiring majority European ownership and control, according to Private Equity Wire. Under the revised arrangements, easyJet’s board will reportedly comprise 10 directors, including four Apollo representatives and two appointed by existing shareholders, Private Equity Wire reports.
Founder Sir Stelios Haji-Ioannou is expected to transfer his family’s existing 15% holding into the private company, giving the family a stake of between 45.1% and 49.9%, according to Private Equity Wire.
Widely known context: EU aviation rules are widely reported to require majority EU ownership and control for airlines operating under EU traffic rights.
