EasyJet has agreed to enter discussions with Castlelake after rejecting a fourth takeover proposal from the US private credit manager, saying that granting the firm access to limited commercial information could lead to an improved offer, according to a report by the FT.
The airline said Castlelake’s latest proposal, valuing the business at approximately £4.9 billion, or 650p per share, substantially undervalued the company and raised concerns over the proposed ownership structure. However, easyJet said further engagement may enable Castlelake to submit a revised offer that better reflects the airline’s value and long-term prospects.
Following the decision to engage, easyJet has requested that the UK Takeover Panel extend the deadline for Castlelake to either submit a firm offer or withdraw from 26 June to 5 July.
Castlelake said its bid includes support from Brookfield, its parent group, alongside other investors, and has been structured to comply with European ownership rules requiring majority EU ownership of airlines. The firm also said it would be open to existing easyJet shareholders retaining an equity stake in the business. EasyJet said it remains concerned about the ownership structure and deliverability of any potential transaction and expects any future proposal to address those issues while offering appropriate assurances.
