UK budget carrier easyJet has said it has not entered into any discussions with investment firm Castlelake, following speculation that the US-based private investment firm is considering a possible takeover offer for the airline, according to a report by Bloomberg.
In a statement on Monday, easyJet’s board said it remains “highly confident” in the company’s strategy and its ability to deliver long-term shareholder value, underpinned by a strong cash position and improving profit outlook. The airline also confirmed it has not received any approach or proposal from Castlelake.
Castlelake, which holds approximately 2.14% of easyJet’s issued share capital, said separately that it is evaluating a potential offer but has not made an approach to the company’s board. Under UK takeover rules, the firm has until 26 June to either announce a firm intention to bid or walk away.
The investment manager has indicated that any offer would need to be at least 403.23 pence per share, in line with regulatory requirements triggered by its stake.
easyJet described the potential approach as “highly opportunistic,” pointing to what it characterised as a depressed share price. The airline also flagged uncertainty over the feasibility of any transaction, citing potential regulatory, financial and execution hurdles associated with a takeover of a listed carrier.
The comments effectively cool near-term expectations of a deal, though Castlelake’s public disclosure keeps the option of a formal bid open ahead of the regulatory deadline.
