EasyJet has rejected a 4.74 billion pound takeover offer from US investment firm Castlelake, calling the approach “highly opportunistic”. The budget airline said it had turned down the proposal after a series of approaches this month.
Castlelake said it had made three approaches to EasyJet in October, all of which were rejected, but it had now published details of its latest offer so shareholders could assess it. The fund, which already owns about 2.14% of EasyJet through vehicles it manages, said it had until Friday to decide whether to make a firm offer or walk away.
Under the latest proposal, EasyJet shareholders would receive 625p per share, a 24% premium to last Friday’s closing price. Castlelake said the bid “offers compelling value” and would support EasyJet as a “stronger, more resilient European airline under European control”.
The move comes as European Union rules require EasyJet to remain majority-owned by EU citizens. Castlelake said it had put forward an ownership structure that would be a “deliverable solution to ensure compliance with all applicable regulatory requirements”.
The public disclosure raises pressure on EasyJet’s board as investors weigh the size of the offer against the airline’s current market position and ownership rules. Castlelake said it had acted after what it described as the board’s unwillingness to engage meaningfully.
EasyJet, one of Europe’s biggest low-cost carriers, has long been seen as a potential takeover target because of its relatively small size compared with some rivals and its valuable slot holdings at major airports. Any deal would need to satisfy the EU ownership rules that shape the airline’s shareholder base.
For Castlelake, the proposal would have represented one of the largest travel-sector acquisitions by a US investment firm in Europe this year. For EasyJet shareholders, the offer gives an immediate test of whether the premium is enough to justify a sale.
