The US investment firm Castlelake has made public its £4.7 billion acquisition proposal for easyJet after the airline turned down its third bid, intensifying an ongoing takeover battle. The company’s latest cash offer, valuing easyJet at 625 pence per share, follows initial bids of 560p and 600p that were also rejected. Castlelake, based in Minneapolis and managing around $36 billion in assets, opted to reveal the proposal so that shareholders could evaluate its value ahead of the June 26 deadline.
Frustration with the easyJet board’s lack of engagement was expressed by Castlelake, as the airline continued to dismiss its advances. To comply with European ownership rules that mandate EU airlines be majority-owned by European investors, Castlelake has collaborated with aviation executives Peter Bellew and Mark Breen. Their plan involves establishing an EU-controlled entity to maintain the necessary majority stake in easyJet.
EasyJet, headquartered in Luton and one of Europe’s leading budget airlines, has firmly rejected the proposal, labeling it as an opportunistic effort to acquire the company at a reduced valuation. The airline criticized the timing of the offer, asserting that it was made during a period when its stock price was still impacted by geopolitical uncertainties and failed to represent its long-term growth potential. Concerns were also raised about the lack of transparency in Castlelake’s proposed ownership structure, with easyJet arguing that the offer fundamentally undervalues the business and its future prospects.
Despite its rejection, the takeover interest has had a positive effect on easyJet’s market performance. The airline’s shares have surged approximately 40% over the past month amid ongoing speculation, and they continued to rise following Castlelake’s announcement. As the situation unfolds, Castlelake faces a decision by June 26 to either proceed with a formal takeover bid or withdraw from the pursuit.