Airline: EasyJet Agrees in Principle to Takeover Offer from US Investor

British budget airline EasyJet has signaled its willingness to accept a takeover bid from US investor Castlelake, marking a shift after previously rejecting multiple offers. The fifth offer from Castlelake values the airline at approximately 5.2 billion pounds (nearly 6.1 billion euros), with each share priced at 6.90 British pounds. This represents a 73% premium over the closing price on May 29, when Castlelake's interest first became public.

The EasyJet board indicated it is inclined to recommend the offer to shareholders. Castlelake now has until August 3 to submit a binding proposal. The US investor's plan involves acquiring only 49% of the company that will take over EasyJet. This structure is necessary because EU regulations require airlines operating within the bloc to be majority-owned and controlled by EU citizens.

To meet these requirements, Castlelake is partnering with former EasyJet manager Peter Bellew and industry expert Mark Breen, both EU citizens, who will acquire the remaining shares. EasyJet has long been a target for acquisition due to its valuable assets, including a modern fleet of Airbus A320 aircraft and prime landing slots in London, Paris, Milan, and Geneva. The airline's largest shareholder is the founding Haji-Ioannou family, holding a 15.3% stake.

Castlelake, a significant player in the aviation sector with around $38 billion in assets under management, is making this move amidst global industry challenges, including high fuel costs and margin pressures exacerbated by the war in Iran. The airline industry worldwide is grappling with these economic headwinds.

“

in principle