EasyJet agrees to £6.90 per share takeover by Castlelake, valuing airline at over £5bn

The deal

EasyJet, Britain's biggest low-cost airline and a member of the FTSE 250 index, has reached an agreement in principle with US investment firm Castlelake on a takeover that would take the company private. The cash offer of £6.90 per share values the carrier at more than £5bn; Bloomberg reported the valuation at £5.2bn ($6.9bn). The board said it would be minded to recommend the offer to shareholders if a firm bid is made.

Negotiation timeline

The agreement caps weeks of negotiations and multiple rejected proposals. EasyJet had dismissed a £6.50 per share bid 10 days earlier, arguing it substantially undervalued the business. Castlelake's fifth and sweetened offer arrived just before a regulatory "put up or shut up" deadline of 5pm on Sunday 5 July. The UK Takeover Panel had previously extended that deadline from 25 June. The parties have now requested a further extension, giving Castlelake until 5pm on 3 August to make a firm offer or walk away.

Castlelake's aviation footprint

Castlelake, advised by Goldman Sachs, is a global alternative investment manager with approximately $38bn in assets and a strategic partnership with Brookfield, which oversees over $1tn. The firm is not new to aviation: it has deployed more than $24bn in the sector since 2005 and maintains relationships with over 200 airlines worldwide.

Castlelake has emphasised its tremendous respect for easyJet and its people, along with its intention to support its future growth and transformation to a stronger, more resilient European airline for the benefit of all stakeholders if the transaction proceeds to completion.

Fleet modernisation and strategy

Castlelake has explicitly backed easyJet's plans to renew its fleet with newer, more fuel-efficient aircraft. The firm described the modernisation programme as fundamental to the airline's long-term competitiveness, efficiency and sustainability goals. EasyJet has been investing in next-generation planes to cut fuel costs and emissions.

Next steps

The proposal remains subject to due diligence and the finalisation of definitive transaction documents. If a firm offer is made and accepted, easyJet would delist from the London Stock Exchange. Castlelake has reserved the right to launch an offer on less favourable terms or without a share alternative.