EasyJet's board has not engaged in discussions with Castlelake LP, a U.S. investment firm, nor has it received any formal offer for a takeover. Castlelake had previously stated it was in the early stages of considering a possible offer, prompting EasyJet's response.
EasyJet described the potential bid as "highly opportunistic" given its current share price, which has been temporarily depressed due to the situation in the Middle East, impacting customer confidence and jet fuel prices. The airline's stock had jumped 13% after Castlelake's initial disclosure, and its market capitalization stands at £3.37 billion ($4.53 billion).
Castlelake, which has acquired a 2.14% stake in EasyJet, making it a top-10 shareholder, would be required to make any offer at no less than 403.23 pence per share. EasyJet's board also highlighted significant regulatory, financial, and execution challenges associated with a potential takeover, particularly concerning EU and British regulations that limit outside ownership to less than 50% for airlines flying on European operating licenses.
EasyJet reiterated its strong financial position, including an investment-grade balance sheet and a net cash position, and expressed confidence in its strategy to achieve a target of greater than £1 billion profit before tax. The company's founder, Stelios Haji-Ioannou, and his associated family interests represent the largest investor with about a 15% stake. Castlelake has until 5:00 p.m. on June 26, 2026, to either announce a firm intention to make an offer or withdraw its interest.
