EasyJet has dismissed a fourth takeover approach from the US investment firm Castlelake, worth £4.93bn, questioning whether the bid can actually be delivered.
The Luton-based low-cost airline said the latest offer valued the company at £6.50 a share – up from previous proposals of £5.60, £6 and £6.25 – but the board still considered it “substantially undervaluing the company and its prospects”. In a statement, EasyJet added that the bid “continue[d] to give rise to significant questions of deliverability”.
“EasyJet rejects a £4.93bn takeover offer from US firm Castlelake, questioning its deliverability.”
The rejection comes as EasyJet’s share price has been hammered by fears over the impact of the Iran war, falling by about 30% over the past year before Castlelake’s interest emerged. The airline said the takeover interest had arrived at a time when its market value was already depressed.
EasyJet has now given Castlelake until 17:00 BST on 5 July to make a firm, binding offer or walk away. But the airline remains “concerned” about Castlelake’s ownership structure and its ability to complete any deal, insisting the investor would need to provide “satisfactory assurances and commitments”.
Castlelake, which has $36bn (£27.3bn) in assets under management, had proposed that the combined entity would be 49% owned by itself and co-investors including Brookfield Asset Management, with the remaining 51% held by individual European Union investors. Whether the US firm can satisfy EasyJet’s board in time remains uncertain.