US firm Castlelake goes public with £4.7bn easyJet bid after rejections
10 reported
US investment firm Castlelake has publicly announced its third takeover proposal for budget airline easyJet, valued at just over £4.7bn, after the airline’s board rejected the offer. The all-cash proposal of 625p a share was turned down on Sunday, following earlier rejected offers at 560p and 600p. Castlelake said it made the bid public so that easyJet shareholders could evaluate it before a takeover deadline on Friday. Under City takeover rules, Castlelake has until 5pm on 26 June to announce whether it intends to make an offer. Castlelake also stated it has partnered with two investors to meet EU regulations requiring European airlines to be majority-owned by regional investors. EasyJet responded by calling the bid an opportunistic attempt to acquire the airline “on the cheap” and said the proposed ownership structure is “opaque.”
What’s reported
Castlelake’s third proposal is an all-cash offer of 625p a share, valuing easyJet at just over £4.7bn.
The easyJet board rejected the proposal on Sunday, following earlier rejections at 560p and 600p.
Castlelake made the bid public on Monday so shareholders could consider it before a 26 June deadline.
Castlelake is headquartered in Minneapolis and manages $36bn (£27bn) in assets.
Castlelake has partnered with Peter Bellew, former COO at Riyadh Air, easyJet, and Ryanair, and former CEO of Malaysia Airlines, who runs Dooks Capital.
The second partner is Mark Breen, CEO of Dublin-based Oneiros Aerospace, with experience at Oman Air.
Castlelake said the EU partner will hold a controlling shareholding in the overall structure and be owned and controlled by EU nationals.
EasyJet said the bid is “opportunistic” and “fundamentally undervalues” the airline, citing a temporarily depressed share price.
Before takeover news, easyJet shares had lost about a fifth of their value since the start of the year; shares gained 2% to 515p on Monday morning.
EasyJet is headquartered in Luton, England, and employs more than 16,000 people.
Key figures
Castlelake: US investment firm, led by executive chair and founder Rory O’Neill.
Peter Bellew: former COO at Riyadh Air, easyJet, and Ryanair, former CEO of Malaysia Airlines, runs Dooks Capital.
Mark Breen: CEO of Dublin-based Oneiros Aerospace, former employee of Oman Air.
Sources: The Guardian
