EasyJet reaches 'agreement in principle' over potential takeover
Summary
EasyJet has reached a preliminary agreement with the US investment firm Castlelake over a possible takeover offer valued at about £5.2 billion. Castlelake’s latest offer is £6.90 per share, higher than previous bids, but the deal is not final and must pass regulatory reviews and shareholder approval.Key Facts
- EasyJet is a low-cost airline based in Luton, UK, flying around 1,200 routes in 35 European countries.
- Castlelake owns about 2.14% of EasyJet’s shares and has made multiple takeover offers before, all previously rejected.
- The new offer from Castlelake is £6.90 per share, better than their earlier bids of £5.60 to £6.50 per share.
- The takeover still requires approval from regulators and EasyJet shareholders.
- EU rules require that EasyJet remain at least 51% owned by a European company; Castlelake is US-based but has plans to meet this rule.
- EasyJet’s board said they would likely recommend this offer to shareholders if it becomes official.
- EasyJet’s share price has dropped over 30% in the last year, partly due to tensions affecting travel, like the US-Israel conflict involving Iran.
- Castlelake manages assets worth about $36 billion (£27.3 billion).
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