EasyJet Plc has rejected three separate takeover proposals from the investment firm Castlelake LP. The most recent and highest offer, made public by Castlelake, was for 625 pence per share, up from an initial 560 pence per share on June 12 and a subsequent 600 pence per share offer on June 17. The 625 pence per share bid, which EasyJet rejected on June 21, values the company at approximately £4.74 billion, or $6.3 billion, based on its outstanding shares.
This latest proposal represents a substantial premium over EasyJet's recent share price, closing at 504 pence on June 19. Castlelake noted that the offer reflects a 59% premium to EasyJet's closing share price of 394.20 pence on May 28, the day before news of Castlelake's interest became public. Castlelake has decided to take its proposal directly to EasyJet shareholders due to the airline's alleged unwillingness to engage meaningfully with its advances.
Castlelake, a US-based asset manager with $36 billion under management, indicated its offer is fully funded through committed equity from managed funds, co-investors, and an EU partner, with Goldman Sachs expressing confidence in arranging debt financing. The investment firm also stated that the proposed price exceeds all analyst price targets since EasyJet's interim trading update on April 16 and marks the highest per-share price since February 2022. EasyJet had previously labeled Castlelake's initial interest as "highly opportunistic" and highlighted concerns over regulatory and financial challenges associated with a takeover, reaffirming its focus on achieving a medium-term profit before tax target exceeding £1 billion.
EasyJet's shares have faced pressure, reportedly declining around 30% in the past year, partially due to concerns about the impact of the Iran war on the airline sector. Castlelake's overtures come ahead of a "Put-up or Shut-up" deadline set by the Takeover Panel for June 26. The firm acquired roughly 0.007% of EasyJet shares between March 2 and May 20 at prices up to 437.14 pence per share through an executive, which sets a minimum price for any formal offer under UK takeover rules.
