EasyJet has branded a £4.74bn takeover approach from US investment firm Castlelake as “highly opportunistic”, accusing the bidder of trying to buy the airline “on the cheap”.
The rejection of Castlelake’s third offer – at 625p per share, a 24% premium to last Friday’s closing price – was confirmed on Sunday, prompting the US firm to go public with its proposal on Monday so that shareholders can assess its merits.
“EasyJet rejects third £4.74bn takeover bid from US firm Castlelake, calling it 'highly opportunistic'.”
Under City takeover rules, Castlelake has until 5pm on 26 June to announce a firm intention to make an offer or walk away. The Minneapolis-based firm, which manages $36bn in assets, already owns a 2.14% stake in easyJet through funds it manages.
EasyJet’s board argued that the share price had been “temporarily depressed” partly due to the impact of the Iran war on the travel sector. The carrier, which last year carried more than 90 million passengers across 38 countries on over 1,200 routes, repeated its claim that the offer was “highly opportunistic”.
Castlelake, however, said its bid “offers compelling value” to shareholders. In a statement, it said: “Following the rejection of three proposals by the easyJet Board, and given its unwillingness to engage meaningfully, Castlelake is announcing this Third Proposal to enable easyJet shareholders to consider its merits.”
The US firm made its first approach earlier this month at 560p per share, followed by a second at 600p, before the latest 625p offer. Each was rejected.
A key hurdle for any takeover is EU ownership rules, which require easyJet to be majority-owned by EU citizens – a rule that still applies even after Brexit. Castlelake said it had devised a “deliverable solution” by partnering with two EU nationals: Peter Bellew and Mark Breen.
Bellew, a former chief operating officer of easyJet and Ryanair, left easyJet in 2022 after a turbulent period of staff shortages and major disruption. He now runs Dooks Capital, a seed investment and advisory firm focused on AI in aviation, based in Saudi Arabia. Breen, chief executive of Dublin-based Oneiros Aerospace, has previously held senior roles at Middle Eastern airlines.
Under the proposed structure, Bellew and Breen would own an EU-based company with majority control of the airline. Castlelake said the EU partner would “at all times be owned and controlled by EU nationals” and that the structure was consistent with those used by other European airlines.
But easyJet dismissed the plan as “opaque”, saying it did not present any basis for assessing the deliverability of the takeover. The airline’s board has so far refused to engage, leaving Castlelake until Friday to make a final move.