EasyJet Plc confirmed on June 22, 2026, that it had rejected three separate unsolicited cash proposals from US investment firm Castlelake LP. The proposals, made between May 10 and May 27, offered £4.70, £5.00, and £5.30 per share respectively, representing a significant premium over EasyJet's recent stock performance but below analyst valuations of its assets.
The final offer of £5.30 per share valued EasyJet at approximately $4.5 billion, or £3.97 billion. Castlelake publicly disclosed its intentions on May 29, stating it was in early stages of considering a possible offer. EasyJet's shares, which had been trading around 398 pence before Castlelake's initial disclosure, jumped by as much as 13% following the news, reflecting investor optimism.
EasyJet's board characterized the overtures as "highly opportunistic," arguing that the timing capitalized on a temporarily depressed stock price due to the Middle East conflict and rising jet fuel costs. Despite the rejections, analysts suggest EasyJet remains an attractive takeover target due to its valuable airport slots at hubs like London, Paris, and Geneva, its efficient Airbus fleet, and its successful holiday business. Bank of America had estimated a takeover value of £6.50 per EasyJet share, while Barclays analysts valued EasyJet's assets, including its fleet, slots, and holiday business, at over £11 per share.
The budget airline has faced challenges since the COVID-19 pandemic, struggling to boost its market capitalization. Its shares have underperformed peers like Ryanair, making it appear "cheap" to potential suitors. Castlelake had a deadline of June 26, 2026, to make a firm offer or withdraw, and by publicly disclosing the rejections, it signals a potential end to its pursuit unless EasyJet's stance changes. The board of EasyJet remains confident in its strategy and ability to deliver long-term shareholder value, aiming for over £1 billion in profit before tax.
