Share

FIRSTonline Banner

EasyJet accepts Castlelake's offer after four rejections: £6,90 per share on the table

The overall valuation is 5,2 billion pounds. The deal is not yet official. The US fund has until August 3rd to formalize or withdraw the offer.

EasyJet accepts Castlelake's offer after four rejections: £6,90 per share on the table

Fifth time lucky. After four rejections. EasyJet has given inThe British low-cost airline has accepted an improved takeover offer from Castlelake. The US fund has put on the table £6,90 per share for an overall assessment of 5,2 billion pounds (6,07 billion euros). 

Offer with a huge prize

The new offer represents a 73% bonus compared to easyJet's closing price on May 29, when the private equity fund manager first disclosed its interest in the company to British regulators, triggering a sharp rally in the stock since then. 

In June, the British company had rejected a £4,93 billion proposal put forward by Castlelake, judging it insufficient, but had signalled its interest in continuing negotiations by granting the private equity manager a limited access to commercial data society.

However, the deal is not officially concluded. By 5:30 PM on August 3rd Castlelake will have to formalize or withdraw the offer and at that point the approval and authorization process will open. 

In a joint statement, the fund reiterated its intention to support the company's future growth and transformation into a stronger and more resilient European carrier, adding that it wanted to support easyJet's fleet modernization program, considering it fundamental to the company's long-term competitiveness, efficiency, and sustainability objectives.

comments