EasyJet Rejects Takeover Bid from Castlelake
EasyJet has turned down a £4.74 billion takeover proposal from the US investment firm Castlelake, labeling the bid as "highly opportunistic."
Castlelake disclosed that it had made three separate approaches to EasyJet during the current month, all of which were declined. The firm has now made the details of its most recent offer public to enable shareholders to evaluate the proposal.
The US fund, which currently holds approximately a 2.14% stake in EasyJet through the funds it manages, has until this Friday to either submit a firm offer or withdraw.
Details of the Offer
According to Castlelake's latest proposal, EasyJet shareholders would receive 625p per share, representing a 24% premium over the closing price last Friday.
"Following the rejection of three proposals by the EasyJet Board, and given its unwillingness to engage meaningfully, Castlelake is announcing this Third Proposal to enable EasyJet shareholders to consider its merits," Castlelake stated.
The firm emphasized that its current bid "offers compelling value" to shareholders of EasyJet.
"Castlelake's ambition is to support EasyJet as a stronger, more resilient European airline under European control, respecting EasyJet's valuable airline assets and continuing to sustain its network," the US investment firm added.
Regulatory Considerations
European Union regulations require that EasyJet must be majority-owned by EU citizens. Castlelake indicated that it has proposed an ownership structure that constitutes a "deliverable solution to ensure compliance with all applicable regulatory requirements."
