EasyJet Plc has rejected three separate takeover offers from investment firm Castlelake LP, with the latest bid valuing the budget carrier at approximately £4.74 billion ($6.3 billion) or 625 pence per share. EasyJet's board deemed the proposals "highly opportunistic" and accused Castlelake of trying to acquire the airline "on the cheap," arguing that its share price was temporarily depressed due to the impact of the Iran war on the travel sector. The 625 pence per share offer represented a 24% premium to EasyJet's closing price before the bid was made public, and a 59% premium to its undisturbed share price at the end of May.
Castlelake, which already holds about a 2.14% stake in EasyJet through funds it manages, has now bypassed EasyJet's board and presented its offer directly to shareholders. Under UK takeover rules, Castlelake has until Friday, June 26, to make a firm offer or withdraw. The investment firm maintains that its latest bid offers "compelling value" for shareholders and has proposed an ownership structure involving a partnership with EU nationals Peter Bellew and Mark Breen to comply with EU regulations requiring majority ownership by EU citizens.
However, EasyJet expressed significant reservations about the proposed ownership structure, labeling it "opaque" and lacking a clear basis to assess its deliverability. The airline also questioned the elevated leverage and overall conditionality of the proposal, asserting that it fundamentally undervalues EasyJet's medium-term prospects, strong balance sheet, and capital structure. EasyJet's board, after consulting with advisers, unanimously rejected the third proposal on June 21, 2026.
