Castlelake reaches preliminary agreement to acquire easyJet in $7.3 billion deal; board says it would be minded to recommend

U.S. investment firm Castlelake has proposed a £5.5 billion ($7.3 billion) acquisition of easyJet, a deal that the airline's board is inclined to recommend to shareholders. The offer, at £6.90 per share, represents a 73% premium over easyJet's closing price on May 29.¹²

Previously, easyJet had rejected a £4.93 billion bid from Castlelake but indicated a willingness to continue discussions by granting limited access to its commercial data. The board's current stance reflects a significant shift, as they noted the latest bid is at a value they would be 'minded to recommend' to shareholders, contingent on Castlelake's compliance with European Union regulations by August 3.³

Analysts have raised concerns regarding Castlelake's ability to meet EU ownership requirements, as the firm plans to hold 49% of the bidding vehicle, with the remainder owned by two EU nationals, including former Malaysia Airlines CEO Peter Bellew. EasyJet operates 355 aircraft across more than 1,200 routes in 38 European countries, with its package holidays business and efficient Airbus fleet being notable strengths. The airline's founder, Stelios Haji-Ioannou, remains the largest investor with a 15% stake, despite leaving the board in 2010. The initial response to Castlelake's approach was that it was 'highly opportunistic' amid the turmoil from the Iran war, which had depressed easyJet's shares.⁴⁵