business
EasyJet Shares Rise 12 Percent After Board Signals Support for £5.5 Billion Castlelake Takeover Bid
EasyJet reached an agreement in principle with Castlelake for a potential 5.5 billion pound takeover. The deal offers 6.90 pounds per share and requires Castlelake to decide by August 3.
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EasyJet shares rose 12 percent in early trading after the airline announced an agreement in principle with Castlelake for a potential takeover valued at around 5.5 billion pounds. GB News reported that Castlelake offered 6.90 pounds per share, a premium to the prior closing price of 5.58 pounds.
EasyJet's board stated it would be minded to recommend the offer to shareholders if Castlelake submits a formal bid on the agreed terms.
The Minneapolis-based firm manages assets worth approximately 36 billion dollars and already holds 2.14 percent of EasyJet through investment funds. The latest proposal arrived on July 4 after Castlelake submitted four earlier offers that EasyJet's board rejected. GB News reported that EasyJet shares had fallen more than 30 percent in the 12 months before takeover interest surfaced in June.
European Union ownership rules require at least 51 percent European ownership for airlines based in Europe. Castlelake has until 5pm on August 3 to announce a firm intention to make an offer or confirm it will not proceed. EasyJet employs more than 19,000 people and operates more than 350 aircraft on over 1,200 routes across 37 countries.
Any formal takeover would also require shareholder approval.
