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US firm goes public with £4.7bn proposal to buy easyJet after earlier bids rejected

US firm goes public with £4.7bn proposal to buy easyJet after earlier bids rejected

Summary

The US investment firm Castlelake has made a third offer to buy the British budget airline easyJet, valued at just over £4.7 billion. EasyJet’s board has rejected all three offers, saying they undervalue the company, and Castlelake has gone public with its latest proposal to give shareholders a chance to consider it before the takeover deadline.

Key Facts

  • Castlelake’s third offer to buy easyJet is an all-cash bid of 625p per share, valuing the airline at around £4.7 billion.
  • EasyJet’s board rejected the offer on the grounds it undervalues the company and called it opportunistic.
  • Castlelake has partnered with two European investors to meet EU rules requiring majority ownership by EU nationals.
  • The EU partners include Peter Bellew, with experience at easyJet and other airlines, and Mark Breen, CEO of Oneiros Aerospace.
  • Castlelake’s previous offers were 560p and 600p per share, both rejected by easyJet.
  • EasyJet’s shares dropped about 20% earlier in the year but have risen 36% in the past month amid takeover talks.
  • There is a takeover deadline for Castlelake to announce an offer by 5pm on June 26.
  • Past takeover interest included approaches from MSC and Wizz Air, both rejected by easyJet.
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