EasyJet has rejected a fourth takeover bid from US investment firm Castlelake, worth £4.93bn, as the airline continues to question the “deliverability” of the offer.
The low-cost carrier, based at Luton airport, said the latest proposal valued each share at £6.50, up from previous offers of £5.60, £6 and £6.25 a share. But in a statement, EasyJet said its board “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 Castlelake takeover bid, citing undervaluation and deliverability concerns.”
The rejection comes at a time when EasyJet’s share price has been under pressure. The FTSE 250 firm said the takeover interest emerged amid concerns about the consequences of the Iran war, which had driven its shares down by about 30% over the past year before news of Castlelake’s interest broke.
EasyJet also 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. Castlelake, which has assets under management worth $36bn (£27.3bn), is not the only party involved: under the proposed deal, EasyJet would be 49% owned by Castlelake and co-investors including Brookfield Asset Management, and 51% owned by individual European Union investors.
A spokesperson for EasyJet said the company has given Castlelake until 17:00 BST on 5 July to make a firm offer or walk away. The deadline now looms, leaving the US firm with little time to convince the board and address the deliverability concerns that have already scuttled four bids.