- Castlelake has disclosed the €5.6bn bid for EasyJet.
- The proposal values the carrier at 625 pence per share.
- EasyJet rejected three prior proposals from the firm.
- Castlelake is partnering with Peter Bellew for compliance.
- The firm offers a partial equity alternative to shareholders.
Veteran Irish aviation executive Peter Bellew is partnering with Castlelake in a €5.6 bn takeover bid for EasyJet after the budget carrier rejected three previous proposals.
The US investment firm values the airline at 625 pence per share and partners with former Malaysia Airlines CEO Peter Bellew to meet European ownership rules that require majority control by EU nationals. Minneapolis-based Castlelake manages about $38 bn in assets and has invested more than $24 bn in aviation since 2005.
Castellake are also working with Mark Breen CEO of Dublin-based Oneiros Aerospace, and has worked with carriers including Oman Air. Between March 2 this year and May 20, Mr Bellew acquired a total of 50,000 shares in EasyJet briging his holding in the airline to 120,000 shares.
The bidding vehicle used to potentially buy EasyJet would be owned 49pc by Castlelake and 51pc by EU nationals and other potential investors as yet undisclosed.
The firm published the third proposal to let EasyJet shareholders consider its merits ahead of the 26 June deadline for a formal offer. Castlelake made two previous bids at 560 pence and 600 pence per share. The latest offer represents a premium of about 57 pc to the share price of 394 pence on 29 May.
Castlelake plans to offer a partial equity alternative that allows shareholders to remain invested in the airline as a privately held business subject to a maximum participation limit. The arrangement for ownership aligns with practices adopted by other European airlines.
Castlelake shared “Following the rejection of three proposals by the easyJet Board, and given its unwillingness to engage meaningfully, Castlelake is announcing this third proposal. Castlelake has presented deliverable proposals to the EasyJet board. It has partnered with Peter Bellew and Mark Breen as EU national individual investors. Peter and Mark are experienced executives who have successfully held senior positions in airlines, including European low-cost-carriers.”
