easyJet agrees in principle to $7.3B takeover bid
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- easyJet agreed in principle to a £5.5 billion cash offer from U.S. investor Castlelake.
- The proposed bid values shares at £6.90, about 73% above the airline’s May 29 closing price.
- Shares jumped around 10.5% after the announcement, though regulatory approval and ownership structure remain key risks.
easyJet said it has agreed in principle to a £5.5 billion ($7.3 billion) cash offer from U.S. investment firm Castlelake after rejecting four earlier proposals.
The offer is priced at £6.90 per share, significantly above the airline’s closing price on May 29 when Castlelake first disclosed interest.
The board said the terms are “a value that the Board would be minded to recommend,” subject to final agreement and Castlelake formally committing to proceed.
Shares rose about 10.5% on Monday, reaching their highest level in a year before trading below the offer price at around 614 pence.
The transaction includes a partial unlisted share alternative as part of the proposed structure.
Regulatory approval remains a key hurdle, including EU ownership rules requiring majority EU control of airlines operating within the bloc.
Castlelake has until August 3 to either make a firm offer or withdraw from the process.