EasyJet has signed an agreement in principle with a US investment firm on a potential takeover bid of roughly £5.2 billion. The low-cost Luton-based airline had previously rejected four acquisition approaches from Castlelake, which owns approximately 2.14% of EasyJet through funds it administers.
It stated the proposals were valued £6.50, £5.60, £6, and £6.25 per share, and has previously accused Castlelake of attempting to buy it “cheaply.” On Sunday, EasyJet’s board of directors and Castlelake announced an agreement in principle on a proposal made on July 4 valued £6.90 per share.
This does not imply that a deal has been finalized. Castlelake now has to get the necessary regulatory certifications and permissions for the acquisition to proceed. One key regulatory impediment is that EasyJet is a European firm, which means it must be 51% controlled by a European company.
Castlelake is a US company, albeit it has previously stated how it intends to comply with this rule. It has until 17:00 BST on August 3 to either announce its firm intention to make an offer or state that it does not intend to do so.
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