London: EasyJet has turned down a $6.25 billion (£4.74 billion) takeover proposal from US investment firm Castlelake, calling the offer ‘highly opportunistic’ and declining to engage with three separate approaches made this month.
Castlelake, which holds a 2.14 percent stake in the low-cost airline through funds it manages, revealed details of its latest bid after the airline’s board rejected its proposals. The investment firm said it wanted shareholders to evaluate the offer directly, arguing that it represents ‘compelling value.’
Under the latest proposal, EasyJet shareholders would receive 625 pence per share, representing a 24 percent premium to the airline’s closing share price. The US investment firm now has until June 26 to either submit a formal takeover offer or withdraw its bid under UK takeover regulations.
In a statement, Castlelake said its vision is to strengthen EasyJet while ensuring it remains a European airline operating under European control. The firm added that it has proposed an ownership structure designed to comply with European Union rules, which require EasyJet to remain majority-owned by EU citizens.
Despite Castlelake’s assurances, EasyJet’s board has maintained its opposition, describing the proposal as opportunistic and showing little interest in entering negotiations. The attempted takeover comes as airlines continue to navigate a competitive European aviation market, with investors seeking opportunities to capitalise on improving travel demand and industry recovery.
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