Shareholders of British budget carrier EasyJet (LSE: EZJ) have voted overwhelmingly to approve the airline’s £5.7 billion ($7.61 billion) takeover by US private equity firm Apollo Global Management (NYSE: APO), clearing a critical threshold to take the low-cost carrier private after more than 25 years on the London Stock Exchange.
📌 Shareholder Vote & Deal Mechanics:
• Overwhelming Approval: The transaction cleared via a court-sanctioned scheme of arrangement, with 97.07% of scheme shares and 83.29% of voting shareholders voting in favor.
• Delisting Timeline: The airline targets completion before the end of Q1 2027, formally exiting the London public market.
• UK Valuation Gap: Apollo’s acquisition marks the latest high-profile privatization of a London-listed stalwart, as US private equity capitalizes on the persistent valuation discount of UK equities relative to Wall Street.
📌 EU Regulatory Hurdles & Ownership Limits:
• Foreign Ownership Caps: Because easyJet relies heavily on EU operating licenses for intra-bloc routes and bases, EU regulations mandate majority ownership and effective control by EU entities.
• Voting Rights Suspended: To navigate the restriction, easyJet suspended voting rights on non-EU shares; EU ownership stood at just 35.07% at the time of Wednesday’s vote.
• Regulatory Review Pending: European Union regulators are preparing a formal scrutiny of airline ownership structures to ensure foreign financial sponsors do not bypass EU control rules.
• Labor Pushback: The European Works Council and labor unions have raised concerns, warning that high-leverage private equity ownership could weaken operational resilience and impact employee safeguards.
💡 Market Takeaway: Apollo’s £5.7B takeover of easyJet highlights private equity’s appetite for legacy aviation cash flows, yet crossing the finish line hinges entirely on post-Brexit regulatory navigation. Reconciling US fund control with strict EU nationality and flying rights will set an important precedent for future cross-border airline buyouts.
