EasyJet shares jump almost 10% after it agrees £5.5bn takeover bid
Summary
EasyJet agreed to be taken over by Castlelake, a US private equity firm, for £5.5 billion after rejecting four earlier bids. The airline’s board will recommend shareholders accept the £6.90 per share offer, and Castlelake has said it plans to support easyJet’s growth and keep the company intact.Key Facts
- Castlelake’s offer of £6.90 per share values easyJet at £5.5 billion.
- The takeover is the fifth bid; easyJet rejected four previous lower offers.
- Castlelake must submit a formal bid by 3 August according to UK takeover rules.
- The new owners plan to support easyJet’s current strategy, including fleet modernization.
- EasyJet’s largest shareholder, Stelios Haji-Ioannou, who owns about 15%, has not yet commented.
- Analysts said UK companies like easyJet are being bought at low prices by foreign firms.
- EasyJet employs 19,000 people and flies about 93 million passengers a year.
- Shares had dropped about 30% in the past year before the bid was announced.
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