business

easyJet shareholders approve the takeover by Apollo

In total, 97% of voting shareholders vote in favor of this acquisition, easyJet stresses in a statement.

easyjet, apollo, moyen, orient, unis, américain, prix, abordables

Key facts

  • In late July, easyJet announces a 70% drop in third-quarter profit from the previous year, to £85 million, or nearly €100 million.
  • In all, 97% of voting shareholders vote in favor of the acquisition, easyJet stresses in a statement. The deal is valued at £5.7 billion, or about €6.8 billion.
  • According to Reuters, 97.07% of the shares covered by the buyback mechanism vote in favor of Apollo's offer.

In late July, easyJet announces a 70% drop in third-quarter profit from the previous year, to £85 million, or nearly €100 million.

In all, 97% of voting shareholders vote in favor of the acquisition, easyJet stresses in a statement. The deal is valued at £5.7 billion, or about €6.8 billion.

According to Reuters, 97.07% of the shares covered by the buyback mechanism vote in favor of Apollo's offer.

The vote comes as the conflict in the Middle East is dramatically driving up the cost of kerosene and weighing on airlines. Many of them had, however, secured a large share of their supplies before the start of the war between the United States and Iran, when prices were much lower.

The airline will publish its full annual results later this month.

Rival Ryanair announced last week a cost-cutting plan and a fare increase next year, in order to offset the impact of the surge in aviation fuel prices.

The takeover of easyJet still faces regulatory hurdles in the European Union. According to Reuters, a majority of the capital must remain held by European investors.

Dig deeper

What is easyJet?

easyJet is a British low-cost airline based in Luton that mainly operates short-haul flights in Europe.

Who is Apollo?

Apollo is a major American investment fund specializing in company buyouts and, here, a candidate to take control of easyJet.

Why can the European Union still block the deal?

European law requires that a majority of an airline’s capital remain owned by European investors.

Why does the Middle East weigh on this case?

The conflict there is driving up the price of jet fuel, airlines’ main cost item.

What happens next?

The buyout must still clear European regulatory hurdles, and easyJet will publish its full annual results later this month.

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