- EasyJet has reached an agreement in principle with Castlelake on 5 July.
- The offer values easyJet at £5.5 billion (€6.4 billion) at £6.90 per share.
- Castlelake must submit a formal binding offer by 3 August.
- The board stands prepared to recommend the deal to shareholders.
- The transaction takes the English headquartered low-cost carrier private if completed.
- Shares in EasyJet rose 10pc
- Castlelake offered £6.90 per share.
- EasyJet operates over 1200 routes.
- The founder retains a 15pc stake.
EasyJet has reached an agreement in principle with Castlelake on the terms of a takeover that values the airline at £5.5 billion (€6.4 billion). The US investment firm, backed by Irish interests, put forward a sweetened offer of £6.90 per share on 4 July. The board of easyJet confirmed it is prepared to recommend the proposal if Castlelake makes a formal offer.
Earlier bids from Castlelake faced rejection by the easyJet board. The latest proposal represents a premium of 73 pc over the share price on 29 May. Castlelake now has until 3 August to submit a binding offer under English takeover rules or withdraw from the process. The deal includes a partial equity alternative for shareholders.
The potential transaction takes the Luton-based low-cost carrier private. Analysts examine possible regulatory approvals and ownership changes that follow from the move. The development marks a key phase after months of negotiations between the parties.
