Apollo agrees to buy UK airline EasyJet in $7.7 billion deal as Castlelake withdraws

Apollo agreed to buy easyJet in a deal valued at about $7.7 billion, after Castlelake pulled out of its bid. Following Castlelake’s decision, easyJet shares in London rose around 3.1% Thursday afternoon, after earlier sliding more than 6% when the prospect of a takeover shifted. Under Apollo’s terms, easyJet investors will receive £7.15 per share ($9.63), a 54% premium over easyJet’s closing price on Feb. 27, the last trading day before the current Middle East conflict. The transaction is expected to close by the end of the first quarter next year.