EasyJet Plc has rejected three separate takeover offers from Castlelake LP, with the investment firm stating that it is now taking its proposal directly to the budget carrier's shareholders. The UK airline rejected Castlelake's most recent proposal of 625 pence per share. This offer, made on June 20, is an increase from previous bids of 560 pence on June 12 and 600 pence on June 17. EasyJet closed at 504 pence on June 19, and the latest bid values the company at about £4.74 billion ($6.3 billion) based on the total number of outstanding shares.
Castlelake has criticized EasyJet's board for its "unwillingness to engage meaningfully" and described its latest offer as "substantially de-risking the execution of the Company’s business plan." The private equity firm is urging investors to provide their views to the airline directly before a 5 PM deadline on June 26, after which Castlelake must either make a formal offer or withdraw.
EasyJet, however, describes Castlelake's approach as "opportunistic" and an attempt to acquire the company "on the cheap." The airline stated that its share value is "temporarily depressed due to the current situation in the Middle East and its impact on customer confidence and jet fuel prices," which had led to a forecast pre-tax loss of between £540 million and £560 million. The 625-pence offer represents a 59% premium on EasyJet’s share price on May 28, before Castlelake's interest became public, and a 71% premium on the airline’s interim trading update in April.
