Castlelake: steps up its pursuit of easyJet, moving towards a binding offer
A decision is likely to be made before the deadline of 3 August
(Il Sole 24 Ore Radiocor) - Castelake is finalising its binding offer for EasyJet and could therefore lift its reservations well before 3 August, the deadline – agreed by the parties – by which the American investment firm must either formalise or withdraw its offer. Specifically, according to Radiocor’s report, work is at an advanced stage, reflecting Castelake’s strong interest in Europe’s second-largest airline. Last Sunday, the boards of directors of the respective companies jointly announced that they had reached an agreement in principle on the key financial terms of a cash takeover bid for the airline. The bid, Castle Lake’s fifth, involves the purchase of shares not yet held by Castle Lake (it currently holds 2.14 per cent) at a price of £6.90 each in cash, including a partial option for unlisted shares. This represents an increase on the previous offer of £6.50 per share. The fifth proposal, the press release explains, is subject to Castlelake either fulfilling or waiving a series of customary preconditions, including the completion of satisfactory due diligence and the finalisation of the definitive transaction documentation. The final proposal – that is, the binding offer – is in the final stages and, at this point, could be put forward very shortly, before the official deadline of 3 August.
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