EasyJet rejects Castlelake's £4.74 billion takeover bid as US firm goes public with third proposal
US investment firm Castlelake made its third offer for EasyJet public after the Luton-based airline's board dismissed three consecutive proposals, the latest valuing the carrier at £4.74 billion.
Castlelake disclosed on 22 June that it had submitted a third, non-binding offer to acquire EasyJet for 625 pence per share, a price the UK budget carrier rejected a day earlier. The private credit firm, which holds about 2.14% of EasyJet, said it was now taking the proposal directly to shareholders ahead of a regulatory deadline.
The bids
Castlelake's initial approach became public on 29 May, following the close of trading on 28 May when EasyJet shares stood at 394.20p. The first indicative offer was pitched at 560p per share, a second at 600p, and the third, submitted on 20 June, at 625p. The latest offer represents a 59% premium on the 28 May price and a 24% premium on Friday’s closing level.
Following the rejection of three proposals by the easyJet board, and given its unwillingness to engage meaningfully, Castlelake is announcing this third proposal to enable easyJet shareholders to consider its merits and provide their views on the third proposal to the easyJet board.
Castlelake also said it intends to offer a partial equity alternative, allowing shareholders to remain invested alongside it in a privately held EasyJet.
EasyJet's response
EasyJet branded the overture "highly opportunistic" in a statement on 1 June, pointing to a depressed share price driven by concerns over the Iran war’s impact on aviation. The airline highlighted its strong financial position and a medium-term goal of delivering more than £1 billion in pre-tax profit. It also cited "considerable regulatory, financial and other execution challenges" linked to a takeover.
The timeline
- EasyJet shares close at 394.20p, the last session before Castlelake’s interest becomes public.
- Castlelake’s preliminary approach to EasyJet is revealed.
- EasyJet dismisses initial approach as ‘highly opportunistic’.
- Castlelake submits third indicative offer at 625p per share.
- EasyJet board rejects the third proposal.
- Castlelake goes public with the bid, urging shareholders to engage.
- ‘Put up or shut up’ deadline: Castlelake must table a firm offer or withdraw.
The UK Takeover Panel has set a "put up or shut up" deadline of 5pm London time on 26 June, by which Castlelake must either table a firm offer or walk away.
Castlelake's credentials
Led by executive chairman and founder Rory O’Neill, Castlelake manages $36 billion in assets. The Minneapolis-based firm previously partnered with Air France to help relaunch Scandinavian Airlines and entered talks earlier this year with bankrupt US carrier Spirit Airlines.
