EasyJet agrees in principle to Castlelake takeover offer valuing it over 5 billion pounds

EasyJet announced Sunday it has reached an "agreement in principle" with US investment firm Castlelake on the main financial terms of a potential takeover. The deal, which values the British airline at over 5 billion pounds, would see Castlelake offer 6.90 pounds per share if a firm offer is formally submitted.

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disposed to recommend shareholders

The airline's board stated it is "disposed to recommend shareholders" accept the proposal. However, Castlelake's deadline to make a firm offer has been pushed to August 3, and EasyJet cautioned that "there is no certainty" such an offer will be made.

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there is no certainty

Castlelake, founded in 2005, manages approximately $38 billion in assets, with a significant presence in aircraft leasing. The firm had previously rejected four offers for EasyJet, with the third deemed "highly opportunistic" given the temporary depression of EasyJet's share price due to the Middle East situation affecting airlines. EasyJet had opened dialogue on June 25, granting Castlelake limited commercial information access in hopes of a more attractive proposal.

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Castlelake has highlighted (its) deep respect" for EasyJet and "its intention to support its future growth and transformation into a stronger European airline

Castlelake has expressed "deep respect" for EasyJet and intends to support its future growth and modernization, particularly its fleet renewal program, which the fund views as crucial for competitiveness, efficiency, and long-term sustainability. This comes as EasyJet faces financial headwinds, having reported a deepened first-half loss attributed to the conflict's impact, with expectations of continued effects in the second half.

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supports EasyJet's fleet modernization program, which it considers central to competitiveness, efficiency, and long-term sustainability goals