EasyJet calls Castlelake's £3bn takeover interest 'highly opportunistic' as shares surge
EasyJet shares jumped up to 13% after US investment firm Castlelake disclosed it is considering a takeover offer valuing the airline at £3bn, but the board branded the timing 'highly opportunistic' and highlighted significant regulatory hurdles.
Castlelake reveals takeover approach
The US private credit firm Castlelake confirmed on Friday it was in the early stages of evaluating a possible takeover bid for the British budget carrier. Castlelake already holds a 2.14% stake in easyJet and said any offer would value the airline at no less than 403.23 pence per share, representing a premium of 1.3% to the previous close and an overall equity valuation of about £3.06 billion. Under UK takeover rules, Castlelake must announce a firm intention to make an offer by 5pm on 26 June, or walk away. The firm has not yet approached easyJet’s board and cautioned there is no certainty an offer will materialise.
Regulatory hurdles loom large
Any acquisition faces complex ownership and control rules required for retaining EU operating rights.
Alternative structures are possible, but the barriers are significant. Founder Stelios Haji-Ioannou, who still owns about 15% of the company and receives annual brand licence fee payments, could play a decisive role in any deal. EU regulations cap non-European ownership at 49% for airlines operating within the bloc.Airlines need to be majority-owned and controlled by EU citizens to hold an operating licence in the region. A non-EU controlled firm like Castlelake could therefore not theoretically take a majority stake in easyJet and keep its intra-EU flying rights.
EasyJet board hits back
The airline, which has not held any discussions with Castlelake nor received a formal approach, labelled the interest
The board nonetheless said it wouldhighly opportunistic timing given the share price is temporarily depressed due to the current situation in the Middle East and its impact on customer confidence and jet fuel prices.
, but notedconsider any proposal, should one be made, while being fully aware of its obligation to maximise value for shareholders
CEO Kenton Jarvis has warned of pressure from elevated fuel costs and cautious consumers, and the company issued a profit warning in April.the considerable regulatory, financial and execution challenges associated with a potential takeover of easyJet.
Shares surge and context
EasyJet shares shot up as much as 13% in early London trading on Monday to 447.8 pence—well above the level implied by Castlelake’s tentative valuation—before settling about 10% higher. The stock had lost over a fifth of its value this year amid the surge in kerosene prices linked to the conflict in Iran and wavering consumer confidence. In the seasonally weak first half to end-March, revenue rose 12% to £3.95 billion but the pre-tax winter loss widened by 40% to £552 million. The company is no stranger to deal chatter: in October 2025 Swiss shipping group MSC was rumoured to be weighing a bid, and in 2021 easyJet rebuffed an approach from rival Wizz Air.
- Castlelake confirms it is in early stages of considering a takeover offer for easyJet
- EasyJet board calls timing 'highly opportunistic'; shares jump up to 13%
- Deadline for Castlelake to make a firm offer or withdraw
