Carrier EasyJet agrees £5.5 billion Castlelake sale

EasyJet has agreed a £5.5 billion takeover approach from US suitor Castlelake.

The budget carrier says the £6.90-a-share approach stands at “a value the board would be minded to recommend to shareholders”.

Castlelake has until 5pm on August 3 to make a firm bid or walk away under City takeover rules.

EasyJet has rejected four previous proposals from Castlelake, with the most recent approach – worth £6.50 a share – valuing the firm at £4.93 billion.

The latest offer is worth £5.23 billion, or £5.5 billion on a fully diluted basis.

The Luton-based airline had previously batted away Castlelake’s interest, claiming it was trying to buy the firm “on the cheap”.

However, officials say its suitor has now provided assurances to allay concerns over its acquisition plans.

A spokesperson said: “Castlelake has confirmed it would agree to a ‘best endeavours’ commitment in any cooperation agreement to obtain any regulatory clearances and approvals required to consummate the transaction.

“Castlelake has emphasised its tremendous respect for EasyJet and its people, along with its intention to support its future growth and transformation to a stronger, more resilient European airline.”

EasyJet – which previously unveiled a 130-job Newcastle International Airport base – was founded by Sir Stelios Haji-Ioannou in 1995, and has since expanded to become one of the largest networks across Europe.

Sir Stelios is set to net a windfall from any sale, as he still owns more than 15 per cent of the firm, along with his family.

Led by executive chair and founder Rory O’Neill, Castlelake has assets under management worth £27 billion.

It entered talks in January with bankrupt US carrier Spirit Airlines over a possible takeover, and previously bailed out collapsed Scandinavian Airlines before selling its shares to Air France-KLM.

Want your business, product or service to be seen regionally and nationally? Bdaily helps you get your story in front of the right audience, every day. Find out how Bdaily can help →

Join more than 55,000 subscribers by signing up to our daily bulletin each morning here.