US investment firm Castlelake has made three successive takeover proposals for budget airline easyJet, all of which the easyJet board rejected. The most recent and publicly disclosed offer stands at 625p per share, valuing the airline at approximately £4.7 billion ($6.3 billion). Prior bids were made at 560p and 600p per share. The easyJet board stated the offers do not reflect fair value and accused Castlelake of undervaluing the company.
Having failed to secure board approval across three separate approaches, Castlelake has taken its 625p all-cash proposal directly to easyJet shareholders. The move comes ahead of a Friday deadline for commitment under UK takeover rules, which require a bidder to either commit to a formal offer or withdraw within a set period.
EasyJet's London-listed shares (EZJ) are directly affected by the takeover contest, as the 625p per share bid represents the price at which Castlelake is seeking shareholder support. The outcome of the shareholder process will determine whether a formal offer proceeds or Castlelake is required to stand down under the deadline framework.
Sources: Bloomberg Markets, Guardian Business