finance
US Investment Firm Castlelake Considering Offer for EasyJet
EasyJet shares rose as much as 12 percent on Monday after U.S. investment firm Castlelake disclosed it was weighing an offer for the Luton-based airline. The airline called the timing opportunistic and said it had not yet received a formal approach.
Jun 1, 5:47 AM·1m read2 sources
OpportunisticLegitimate offer
skift.comAudio version
Tap play to generate a narrated version.
Developing·Limited corroboration so far. This page will refresh as more sources emerge.
U.S. investment firm Castlelake revealed late on Friday that it was in the early stages of considering an offer for EasyJet but had not yet approached the airline’s board. Castlelake has until 17:00 BST on 26 June to make a firm offer or walk away under UK takeover rules.
EasyJet said it had not yet received any approach or proposal. The airline highlighted its strong financial position and its medium-term target of more than £1 billion in pre-tax profits. It also pointed to considerable regulatory, financial and execution challenges associated with any takeover.
EasyJet shares closed Friday at 398 pence. The company noted its share price had fallen 31 percent over the past year. It posted a half-year pre-tax loss of £552 million last month, wider than the £401 million loss recorded a year earlier, after summer bookings fell below the prior year’s level because of uncertainty caused by the Middle East conflict.
Castlelake manages £27 billion in assets. The firm previously engaged with U.S. carrier Spirit Airlines over a possible takeover and bailed out collapsed Scandinavian Airlines before selling its shares to Air France-KLM.
