Key facts
- EasyJet rejected a fourth takeover bid from Castlelake at £6.50 per share.
- The airline stated the offer "substantially undervalues the company and its prospects."
- EasyJet expressed concerns about the ownership structure and deliverability of Castlelake's proposed deal.
- The company will provide commercial information to Castlelake to help it produce a more attractive proposal.
- Previous bids of £5.60, £6, and £6.25 per share were also rejected.
EasyJet has rejected a fourth takeover bid from US private equity firm Castlelake, stating the offer of £6.50 per share "substantially undervalues the company and its prospects." The budget airline also raised significant concerns regarding the ownership structure and the "deliverability" of Castlelake’s proposed deal, which requires 51% EU national involvement in the takeover vehicle.
Despite the rejection, EasyJet's board indicated a willingness to engage further, planning to provide Castlelake with commercial information to help formulate a "more attractive proposal." This marks the fourth time EasyJet has turned down an offer, following previous rejections of bids at £5.60, £6, and £6.25 per share. The airline had previously described Castlelake's earlier approaches as "opportunistic" given the company's share price lows, partly attributed to the Iran war.
The current offer from Castlelake includes proposals for EasyJet shareholders to gain non-voting shares in its takeover vehicle. The involvement of EU nationals like former Malaysia Airlines boss Peter Bellew and Mark Breen, chief executive of Dublin-based Oneiros Aerospace, is crucial to meet EU competition rules.