Castlelake goes public with 625 pence cash offer ahead of takeover deadline, urging shareholders to pressure the board
easyJet, the low-cost airline relegated from the FTSE 100 in March, has rejected three successive takeover approaches from US investment firm Castlelake, the latest valuing the carrier at 625 pence a share in cash.
Castlelake went public with its proposal on Monday after the easyJet board declined to engage, urging shareholders to press the directors before a regulatory deadline of 5pm on 26 June.
The Minneapolis-based firm first offered 560 pence a share on 12 June, a bid rejected four days later.
A second proposal at 600 pence was turned down on 20 June, and a third at 625 pence was rejected the following day.
The latest offer represents a premium of about 59% to easyJet's closing price of 394.20 pence on 28 May, the last trading day before Castlelake's interest became public.
It also sits above every analyst price target published since easyJet's interim trading update in April, and above any closing price for the shares since February 2022.
easyJet shares closed at 504 pence on Friday, having recovered some ground as bid speculation mounted.
Castlelake said the cash offer would be accompanied by a partial equity alternative, allowing shareholders to retain a stake in easyJet as a privately held company, subject to limits.
The firm has structured the deal to satisfy European Union rules that require EU-controlled ownership of airlines operating within the bloc.
To meet those requirements, Castlelake has partnered with Peter Bellew and Mark Breen, two aviation executives acting as EU national investors, who would hold a controlling shareholding through an EU company.
Bellew, a former chief operating officer at Ryanair, built up a holding of 50,000 easyJet shares between March and May, paying as much as 437.14 pence.
That purchase sets a regulatory floor, meaning any formal Castlelake offer cannot fall below 437.14 pence a share.
The proposal is expected to be funded through committed equity from Castlelake and its co-investors, with Goldman Sachs lined up to arrange debt financing.
Castlelake stressed the approach is not yet a firm offer, and that there is no certainty a binding bid will follow.
