EasyJet accepts Castlelake’s offer of £6.90
This is the fifth bid by the US fund to acquire the British low-cost airline for 5.2 billion pounds. There is no suggestion of a break-up.
by Mara Monti
The British low-cost airline easyJet has announced that it has reached an agreement in principle with the US investment firm Castlelake, based on an improved offer of £6.90 per share.
The new bid values easyJet at £5.2 billion, exceeding the previous offer of £6.50 per share, after the group had already rejected four proposals. The latest valuation, at £4.93 billion, had been deemed insufficient by the board of directors.
Despite the rejection of previous offers, easyJet had granted Castlelake an extension to access the company’s commercial data following the submission of the improved proposal, thereby confirming both parties’ willingness to continue negotiations.
In a joint statement, Castlelake reiterated “its intention to support the company’s future growth and transformation into a stronger and more resilient European airline”, adding that it wishes to support “easyJet’s fleet modernisation programme, which it considers fundamental to the company’s long-term objectives of competitiveness, efficiency and sustainability”.
Furthermore, according to sources close to the matter, there are no plans to break up the company, contrary to what had been speculated in recent days.
