EasyJet rejects ‘highly opportunistic’ £4.7bn takeover bid by US firm

Budget carrier EasyJet has rejected a £4.7 billion takeover bid from US investment firm Castlelake, the latest in a series of three offers.

 

The airline’s rejection prompted the US firm to go public with its proposal on Monday morning (June 22), urging easyJet shareholders to consider the merits of the bid.

 

Castlelake already owns a stake of about 2.14% in easyJet through the funds it manages and has until this Friday to make a firm offer or walk away.

 

Under Castlelake’s latest offer, the airline’s shareholders would receive 625p per share, a 24% premium to last Friday’s closing price.

 

EasyJet issued a response on Monday, saying it concluded that the third proposal – for £6.25 per share – is “highly opportunistic, delivered against the backdrop of easyJet’s temporarily depressed share price, and still fundamentally undervalues easyJet and its prospects”.

 

The airline had “unanimously rejected” two previous proposals from Castlelake at £5.60 and £6 per share “as not being in the best interests of shareholders”.

 

The statement from easyJet said the share price analyses presented by Castlelake are based “primarily on Middle East conflict-affected share prices, short term earnings and analyst reports”.

 

“They fail to reflect easyJet’s medium-term prospects, its strong balance sheet and capital structure and still less provide an adequate control premium thereto,” said the airline.

 

The envisaged ownership structure would be owned 49% by Castlelake and 51% by EU nationals and potentially other investors which have not been disclosed.

 

EasyJet said this is “opaque and does not present any basis for assessing the deliverability of the Third Proposal”.

 

“The board remains highly confident in easyJet’s strategy and its ability to deliver attractive long-term value for shareholders,” said the airline.

 

“EasyJet is in a position of strength, underpinned by an investment grade balance sheet with a net cash position, alongside strong customer satisfaction and high employee engagement.

 

“In the two full financial years to September 2025, it has delivered a 46% increase in pre-tax profit, driven by growth in easyJet Holidays and improved operational performance.

 

“While the current year, across the sector, has been impacted by temporary disruption related to the Middle East conflict, the company remains focused on executing its medium-term target of delivering greater than £1 billion profit before tax.”

 

The statement also outlined its fleet renewal plan, easyJet Holidays developments, and brand strength, concluding: “Accordingly, the board believes that the Third Proposal represents an opportunistic attempt to acquire easyJet ‘on the cheap’ and that it is therefore not in the best interests of easyJet shareholders.

 

“Shareholders are advised to take no action at this time.”

 

Castlelake said in its statement: “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 and provide their views on the Third Proposal to the easyJet Board ahead of the upcoming ‘Put-up or Shut-up’ deadline at 5.00 pm (London time) on 26 June 2026.”

 

It added: “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, serve the passengers who depend on them and enable future growth.”

 

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