business
EasyJet Agrees in Principle to £5 Billion Takeover by Castlelake
EasyJet reached an agreement in principle with US investment firm Castlelake for a £5 billion takeover at £6.90 per share. The deal follows multiple rejected offers and requires regulatory approvals before a formal bid by 3 August.
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EasyJet agreed in principle to a £5 billion takeover by US investment firm Castlelake at £6.90 a share. The companies announced the agreement Sunday evening in a statement to the stock market and requested an extension to a deadline for completing the deal formally. The agreement followed weeks of negotiations and several rejected offers.
EasyJet had turned down four prior bids from Castlelake at £6.50, £5.60, £6 and £6.25 a share, including one at £6.50 that the board said substantially undervalued the business 10 days earlier. EasyJet’s board stated it would be minded to recommend a firm offer to shareholders.
Castlelake, which owns a 2.14 percent stake through funds it manages, said it has emphasised its respect for EasyJet and its people along with its intention to support future growth and fleet modernisation to cut fuel costs.
Castlelake has until 5pm BST on 3 August to announce a firm intention to make an offer or state it does not intend to proceed. Any offer would require regulatory clearances, including compliance with EU rules that EasyJet must remain at least 51 percent owned by a European entity. EasyJet employs more than 19,000 people and operates around 1,200 routes across 35 European countries.
Castlelake manages $36 billion in assets.
