Key Takeaways
- • EasyJet has rejoined the FTSE 100 index after a six-month demotion to the FTSE 250, driven by a £5.7 billion private equity takeover bid from Apollo at 715p per share, representing a 30% year-to-date share price gain.
- • Apollo's acquisition of easyJet will require shareholder, regulatory, and court approval, with completion expected in Q1 2027, at which point the airline will be delisted from the London Stock Exchange.
- • EasyJet's FTSE 100 return is temporary and likely ceremonial—Richard Hunter of Interactive Investor characterized it as a "last hurrah" before the company enters private ownership.
- • The quarterly FTSE reshuffle also promoted North Sea oil and gas producer Ithaca Energy (a Delek Group subsidiary) into the premier index, while Persimmon and Entain were demoted.
- • EasyJet's share price recovery follows a period of widening losses and earlier demotion, but has benefited from a competitive bidding process that saw Castlelake withdraw in favor of Apollo's higher offer.
Summary
EasyJet has returned to the FTSE 100 index following this week's quarterly reshuffle, marking a reversal of its demotion to the FTSE 250 six months earlier. However, the airline's return to the UK's premier equity index is expected to be short-lived. The company has agreed to a £5.7 billion acquisition by Apollo Global Management, with the private equity firm offering 715p per share, valuing easyJet's fully diluted share capital at approximately £5.7 billion.
The takeover followed a competitive bidding process between Apollo and rival investment firm Castlelake. Castlelake withdrew from negotiations last month after Apollo raised its offer, ultimately securing a board recommendation. The transaction remains subject to shareholder approval, regulatory clearance, and court sanction, with completion anticipated in the first quarter of 2027. Upon completion, easyJet will be removed from public markets and transition to private ownership.
The airline's share price has gained approximately 30% since the start of 2026, recovering from a period of operational challenges and widening losses that triggered its earlier demotion from the FTSE 100. Market observers note that easyJet's brief return to the index represents a symbolic conclusion to its tenure as a public company. Richard Hunter, head of markets at Interactive Investor, described the reinclusion as the company's "last hurrah," highlighting that easyJet has historically moved in and out of the FTSE 100 throughout its listing history.
In the same quarterly reshuffle, North Sea oil and gas producer Ithaca Energy—a subsidiary of Israeli conglomerate Delek Group—was promoted to the FTSE 100. Ithaca's inclusion reflects a 64% year-to-date share price appreciation, supported by its growth pipeline, which includes a 20% stake in the Rosebank field pending regulatory approval for first oil production in H1 2027. Conversely, housebuilder Persimmon and gambling operator Entain were demoted from the index in this reshuffle, which was confirmed after markets closed on Wednesday.
The takeover followed a competitive bidding process between Apollo and rival investment firm Castlelake. Castlelake withdrew from negotiations last month after Apollo raised its offer, ultimately securing a board recommendation. The transaction remains subject to shareholder approval, regulatory clearance, and court sanction, with completion anticipated in the first quarter of 2027. Upon completion, easyJet will be removed from public markets and transition to private ownership.
The airline's share price has gained approximately 30% since the start of 2026, recovering from a period of operational challenges and widening losses that triggered its earlier demotion from the FTSE 100. Market observers note that easyJet's brief return to the index represents a symbolic conclusion to its tenure as a public company. Richard Hunter, head of markets at Interactive Investor, described the reinclusion as the company's "last hurrah," highlighting that easyJet has historically moved in and out of the FTSE 100 throughout its listing history.
In the same quarterly reshuffle, North Sea oil and gas producer Ithaca Energy—a subsidiary of Israeli conglomerate Delek Group—was promoted to the FTSE 100. Ithaca's inclusion reflects a 64% year-to-date share price appreciation, supported by its growth pipeline, which includes a 20% stake in the Rosebank field pending regulatory approval for first oil production in H1 2027. Conversely, housebuilder Persimmon and gambling operator Entain were demoted from the index in this reshuffle, which was confirmed after markets closed on Wednesday.
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