business
EasyJet agrees in principle to Castlelake takeover but deal still needs regulatory approval
EasyJet said it intends to accept a £5.5 billion offer from U.S. firm Castlelake that would take the airline private at £6.90 per share. The agreement follows multiple rejected bids and comes after two profit warnings this year.
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EasyJet announced an agreement in principle Sunday evening to accept a £5.5 billion takeover offer from Castlelake that would take the airline private at £6.90 per share. The companies requested an extension to complete the deal formally. EasyJet had rejected an offer of £6.50 per share 10 days earlier and an initial bid of £5.60 per share.
Its shares closed at £5.58 on Friday, giving the company a market value of £4.2 billion. The last time the shares traded above £6.90 was in early 2022. Stelios Haji-Ioannou and his family, who own more than 15 percent of EasyJet, would receive nearly £800 million if the transaction closes.
EasyJet, a member of the FTSE 250 index, is headquartered at Luton airport north of London and operates from 164 airports in 38 countries with 19,000 employees. The airline issued two profit warnings in the spring and reported falling bookings in March amid the US-Israeli war on Iran.
Castlelake, based in Minneapolis and founded by Rory O’Neill, specializes in asset-based lending and leasing aircraft.
It is selling a prior stake in Scandinavian airline SAS to Air France-KLM. Investment bank Evercore advised EasyJet; Goldman Sachs advised Castlelake. Castlelake has until 5 p.m. on 3 August to make a firm offer or walk away.
