EasyJet open to GBP 5.2bn takeover proposal from US investor

Dhaka: EasyJet has reached an agreement in principle with US investment firm Castlelake over a possible takeover that values the airline at approximately GBP 5.2 billion, marking a significant shift after previously rejecting several acquisition attempts.

Under the latest proposal, submitted on July 4, Castlelake is offering GBP 6.90 per share for the low-cost carrier. EasyJet's board said, the proposed valuation is at a level it would be prepared to recommend to shareholders if a formal offer is made.

The agreement does not represent a completed deal. Castlelake must still secure regulatory approvals and meet other conditions before it can submit a binding takeover offer. The investment firm has until 3 August to either confirm its intention to proceed or withdraw its interest.

One of the key challenges is complying with European Union ownership rules, which require EU airlines to remain majority-owned and controlled by EU nationals. To address this, Castlelake has previously proposed a structure involving former EasyJet executive Peter Bellew and aviation consultant Mark Breen, who would hold majority control through an EU-based company.

Castlelake, which already owns about 2.14 percent of EasyJet through funds under its management, had earlier made four unsuccessful takeover approaches. At the time, EasyJet argued the offers significantly undervalued the business.

Industry analysts said, EasyJet remains an attractive acquisition target because of its strong market position, extensive European network, valuable airport slots, and sizeable aircraft fleet. The airline operates more than 1,200 routes across 35 European countries, employs over 19,000 people, and has more than 350 aircraft in service, along with a substantial order book.

Castlelake manages approximately USD 36 billion in assets and said it supports EasyJet's long-term growth strategy and aims to help strengthen the airline's position in the European aviation market should the takeover move forward.