EasyJet Plc has labeled a potential takeover bid from investment firm Castlelake LP as "highly opportunistic." The budget airline's board stated that no talks have occurred with Castlelake. EasyJet's stock rose by as much as 13% after Castlelake's initial disclosure on Friday, rebounding from a 16% slide this year, largely attributed to heightened fuel prices and weakened consumer confidence following the onset of the US-Israeli war on Iran.
Castlelake, which acquired a 2.14% stake in EasyJet, valued at £65 million, and established itself as a top-10 shareholder, would need to offer at least 403.23 pence per share for any bid. EasyJet's board, however, remains confident in its strategy, pointing to an investment-grade balance sheet and a net cash position. The airline emphasized its commitment to achieving a medium-term target of over £1 billion in profit before tax.
The airline also highlighted the significant regulatory and financial challenges associated with a full takeover. European Union and UK regulations stipulate that more than 50% of an airline cannot be held by non-EU or non-UK entities, posing a considerable hurdle for a US-based firm like Castlelake. Analysts view a complete takeover as improbable due to these restrictions and potential competition challenges.
EasyJet's founder, Stelios Haji-Ioannou, whose family controls about 15% of the company, also holds considerable sway, collecting a 0.25% royalty fee on revenue for the brand. Castlelake has until 5:00 p.m. on June 26, 2026, to make a firm offer or withdraw its interest, with EasyJet advising shareholders to take no action until then.
