Castlelake, a Minneapolis-based investment firm, has made a £4.74 billion takeover bid for easyJet public after the budget carrier's board rejected three separate proposals. The all-cash offer of £62.5 per share values the airline at just over £4.7 billion and represents a premium of approximately 57% compared to easyJet's share price of £39.4 on May 29.
This latest proposal follows previous bids of £56 and £60 per share. Castlelake, which manages about $38 billion in assets and has invested more than $24 billion in aviation since 2005, disclosed the offer to allow easyJet shareholders to evaluate its merits before a June 26 deadline. The investment firm is seeking to take the budget airline private, while easyJet has described the approach as highly opportunistic.
To comply with European ownership rules requiring majority control by EU nationals, Castlelake has partnered with Mark Breen and former Malaysia Airlines CEO Peter Bellew. The firm stated that this arrangement is consistent with those used by other European airlines to ensure full regulatory compliance. Additionally, Castlelake plans to offer a partial equity alternative, allowing shareholders to remain invested in the airline as a privately held business, subject to a maximum participation limit.