EasyJet has thrown out a fourth takeover offer from US investment firm Castlelake, worth £4.93bn, questioning whether the bid can be delivered.
The Luton-based low-cost airline said the proposal valued the company at £6.50 a share, up from Castlelake’s earlier offers of £5.60, £6 and £6.25 a share. But the board, having reviewed the bid with advisers, said it “continues to regard the fourth proposal as substantially undervaluing the company and its prospects and continuing to give rise to significant questions of deliverability.”
“EasyJet rejects £4.93bn fourth takeover bid from Castlelake, citing undervaluation and deliverability concerns.”
The rejection sets a deadline for Castlelake: the firm must make a firm offer or walk away by 17:00 BST on 5 July. EasyJet said it remained “concerned” about Castlelake’s ownership structure and ability to deliver any offer, adding that the investor would need to provide “satisfactory assurances and commitments” on those issues.
The takeover interest comes at a time when EasyJet’s share price has been hit by concerns over the consequences of the war in Iran. The FTSE 250 carrier’s shares had dropped by about 30% over the past year before news of Castlelake’s interest emerged.
Castlelake, which has assets under management worth $36bn (£27.3bn), is backed by co-investors including Brookfield Asset Management. Under the proposed deal, EasyJet would be 49% owned by Castlelake and its co-investors, with 51% held by individual European Union investors.
A spokesperson for EasyJet confirmed the deadline for Castlelake to make a binding offer, but declined to comment further while the process continues.