EasyJet bidder Castlelake’s 625p offer rejected, market skeptical
7 reported3 unconfirmed
According to a single-source report from The Guardian, US investment firm Castlelake has had its takeover offer for easyJet rejected three times by the airline's board. The latest offer, at 625p per share or £4.7bn, was rejected on Sunday. Castlelake has gone public with its terms ahead of a "put up or shut up" bid deadline at the end of this week. The market price for easyJet shares rose only 2% to 518p on Monday, indicating limited shareholder support. EasyJet founder Stelios Haji-Ioannou, who with his family holds a 15% stake, has not publicly supported either side. The article notes that easyJet's balance sheet is solid, with assets valued at £5bn including 208 owned aircraft and landing slots. Castlelake's bid structure involves an EU partner company led by two EU nationals to comply with EU ownership rules, but easyJet has called the structure "opaque."
What’s reported
Castlelake's latest offer of 625p per share (£4.7bn) was rejected by easyJet's board on Sunday.
The "put up or shut up" bid deadline falls at the end of this week.
EasyJet shares traded at 518p on Monday, up only 2%.
Stelios Haji-Ioannou and his family own 15% of easyJet and have not commented.
EasyJet's assets are valued at £5bn, including 208 owned aircraft and landing slots.
Castlelake's bid structure involves an EU partner company with majority votes, while Castlelake holds economic ownership.
EasyJet described the ownership structure as "opaque" and questioned its deliverability under EU rules.
Open questions
Whether Stelios Haji-Ioannou will support Castlelake's bid.
Whether Castlelake's bid structure complies with EU ownership rules.
The exact timeline for easyJet's "medium term" profit target of £1bn-plus.
Key figures
Castlelake (US investment firm, bidder)
Stelios Haji-Ioannou (easyJet founder and 15% shareholder)
easyJet board of directors
Sources: The Guardian
