EasyJet Plc has turned down three separate acquisition proposals from invester Castlelake LP. The latest offer, made Saturday, was for 625 pence per share, increased from a prior bid of 560 pence on June 12. This values EasyJet at about £4.74 billion ($6.3 billion) based on its outstanding shares. EasyJet's stock closed at 504 pence on June 19.
Castlelake has criticized EasyJet's unwillingness to engage in meaningful discussions and has now bypassed the board to appeal directly to shareholders. EasyJet, however, has described Castlelake's approach as "opportunistic," asserting that the firm is trying to acquire the airline "on the cheap" while its share price is temporarily low due to regional geopolitical tensions and their impact on jet fuel prices and customer confidence. The airline highlighted its strong financial position and confidence in its strategy to achieve over £1 billion in medium-term profit before tax.
Castlelake's final offer represents a 59% premium over EasyJet's closing share price on May 28, the day before Castlelake's interest became public. The private equity firm has set a deadline for June 26 for shareholders to consider its proposal, at which point Castlelake must either make a formal offer or withdraw. The bidder has indicated that its offer is fully funded through committed equity and debt financing, with an option for partial equity retention for existing EasyJet shareholders.
