U.S. private equity giant Apollo has made a surprise £5.7 billion takeover bid for British airline easyJet, surpassing a previous offer from investment group Castlelake.

The proposal values easyJet shares at £7.15 each and has been positively received by the airline’s board.

The announcement caused easyJet’s shares to surge by about 13 percent as investors welcomed the possibility of a higher acquisition price.

Analysts noted that earlier bids had undervalued the company despite the recovery in global travel demand.

Apollo’s proposal includes an option that would allow existing investors to retain a stake in the airline after the acquisition.

The move highlights growing investor interest in the aviation sector as passenger traffic continues to recover strongly.

Industry experts say airlines are becoming attractive investment targets because of improving profitability and resilient consumer demand for travel.

Companies are also benefiting from lower fuel prices compared with earlier periods of geopolitical uncertainty.

If completed, the acquisition would become one of the biggest deals in the European aviation sector this year and could encourage further consolidation within the industry.

Source: The Guardian