EasyJet has returned to the FTSE 100 index, but its time among the UK’s top listed companies may prove extremely brief following a blockbuster private equity acquisition agreement.
The budget airline agreed to be bought by investment firm Apollo in a deal valuing easyJet’s fully diluted share capital at approximately £5.7 billion, or 715p per share.
The latest quarterly FTSE reshuffle was confirmed after stock markets closed on Wednesday, with the changes set to take effect imminently.
EasyJet’s return to the FTSE 100 comes just six months after the carrier was demoted to the lower-ranked FTSE 250 following a period of widening losses and share price weakness.
The airline’s fortunes turned sharply after it became the subject of a bidding battle between investment firms Apollo and Castlelake, driving significant investor interest.
Castlelake walked away from talks last month after Apollo put forward a higher offer, leaving Apollo as the sole suitor for the airline.
EasyJet shares have jumped by about 30% since the start of the year, helping propel the company back into the upper ranks of the London market.
Richard Hunter, head of markets for Interactive Investor, described easyJet’s FTSE 100 promotion as a “last hurrah” for the airline’s time as a publicly listed company.
“The company, which has flitted in and out of the premier index during its history, will at least be ending on a high,” Hunter said.
The takeover requires approval from shareholders, regulators, and the court, with completion expected in the first quarter of 2027, after which easyJet would be removed from the London Stock Exchange entirely.
North Sea oil and gas producer Ithaca Energy (ITH.L) also earned promotion to the FTSE 100, with its shares rising 64% so far this year amid a strong operational outlook.
Hunter noted that Ithaca holds a 20% interest in the Rosebank field, which is subject to regulatory approval for first oil in the first half of 2027, adding considerable growth potential.
“Improved guidance and a generous 9.7% dividend yield add to the investment case,” Hunter said of the Ithaca Energy promotion.
Ithaca Energy is a subsidiary of Israeli Delek Group, operating primarily across the North Sea with a growing production and development pipeline.
Housebuilder Persimmon (PSN.L) suffered relegation from the FTSE 100 after its share price sank by around 16% this year, with the company citing challenging housing market conditions.
Mortgage rates spiked during the spring following the escalation of conflict in the Middle East, adding further pressure to an already difficult operating environment for UK housebuilders.
Gambling group Entain, the owner of Ladbrokes and Coral, also dropped out of the FTSE 100 after its share price weakened by approximately 30% since the start of the year.
Despite beating expectations for its first-half financial performance, Entain warned it faces new UK gambling taxes worth approximately £250 million, a significant headwind for the business going forward.
