EasyJet founder Sir Stelios Haji-ioannou and his family will remain significant shareholders in the airline after its proposed £5.7 billion takeover by US investment firm Apollo, bringing an end to a bidding contest for one of Europe’s largest low-cost carriers.

The British airline confirmed on Thursday that its board had agreed to the terms of Apollo’s all-cash offer, valuing the company at around $7.7bn.

The agreement came shortly after rival US investment group Castlelake announced that it would not increase its offer of just over £5bn. Under British takeover rules, both companies had been given until Friday to submit revised proposals.

Castlelake confirmed that, “after careful consideration, it does not intend to make an improved offer for easyJet”, clearing the way for Apollo’s higher bid.

EasyJet had already indicated last month that Apollo’s preliminary £5.7bn proposal represented a better outcome for shareholders than the competing approach.

However, the transaction will not result in Apollo owning the entire airline. British and European Union aviation rules require carriers to remain majority-owned and effectively controlled by qualifying UK or European nationals.

As a result, the takeover will involve an ownership structure that allows easyJet to continue meeting those requirements after it is removed from the London Stock Exchange.

Sir Stelios welcomed Apollo’s involvement and confirmed that his family would retain shares in the privately owned airline created following the delisting.

“I welcome Apollo’s strategic intentions for easyJet, which aim to create new growth prospects for the company,” Sir Stelios said.

He described Apollo’s decision to invest as a vote of confidence not only in the airline but also in the wider business model developed around the easy name.

“The fact that Apollo, one of the world’s most powerful and experienced institutional investors, has decided to support and invest in the development of easyJet, the leading member of the easy family of brands, is a strong confirmation of the value of the easy brand and the dynamics of the easyGroup Ltd business model,” he added.

Sir Stelios also made clear that the takeover would not end his family’s involvement with the airline.

“My family and I intend to maintain our position as significant long-term shareholders in easyJet, supporting the next chapter of the company’s journey,” he said.

Apollo, which manages more than $1 trillion in assets, already has extensive experience in aviation. Its previous investments include Aeromexico, Sun Country Airlines and Atlas Air, while it has also provided financing to Air France-KLM and Virgin Atlantic.

For Sir Stelios, the agreement marks another major turning point in a business story that began in 1994, when he launched easyJet at the age of 27.

The airline was subsequently listed on the London Stock Exchange in 2000, allowing it to raise funds for expansion. Its fleet has since grown from 19 aircraft to around 356.

At the time of the flotation, however, Sir Stelios retained ownership of the easyJet brand through his private company, easyGroup Ltd. EasyJet continues to license the name from easyGroup, giving the founder an important commercial relationship with the airline beyond his shareholding.

“Owning the easy family of brands has created a steady stream of income for me over the last 26 years, which I can now use to fund the charitable work of the Stelios Haji-ioannou Charitable Foundation,” he concluded.