- EasyJet agrees in principle to a sweetened £6.90 per share takeover proposal from Castlelake, announced on July 5.
- EasyJet's board said the £6.90 per share terms are at a value it would be minded to recommend to shareholders should a firm offer be made.
- A key regulatory hurdle: EU rules require EasyJet to be 51% owned by a European company, while Castlelake is a US firm that must show compliance.
- Castlelake put forward a proposal on 4 July for a potential takeover offer worth around £5.2 billion.
- Castlelake has assets under management worth $36bn (£27.3bn) and expressed respect for EasyJet's people and intention to support its growth and transformation.
EasyJet has reached an agreement in principle with Castlelake for a £5.2 billion takeover at £6.90 per share.124
The board stated it would recommend the offer to shareholders if a firm proposal is made, following four previous rejections of lower bids.
Castlelake, which manages assets worth $36 billion (£27.3 billion), owns a 2.14% stake in EasyJet.
However, regulatory hurdles remain, as EasyJet must be 51% European-owned under EU rules. Castlelake has indicated it will seek to comply with these regulations.3
The deadline for Castlelake to announce a firm intention to make an offer is 17:00 BST on 3 August.
EasyJet's shares closed at £5.58 on Friday, having fallen over 30% in the past year before the first bid emerged in June.
EasyJet employs over 19,000 people and operates around 1,200 routes across 35 European countries.
In announcing the agreement, EasyJet noted Castlelake's respect for the airline and its commitment to support its growth and transformation into a more resilient European carrier.
“EasyJet's board said it would be minded to recommend the £6.90 per share offer to shareholders if a firm offer is made. However, regulatory hurdles remain as EU rules require EasyJet to be 51% European-owned, and Castlelake is a US firm that must show compliance.”
