British low-cost airline easyJet has rejected a £4.7 bn hostile takeover proposal from U.S. investment firm Castlelake, which has gone public with its bid after three unsuccessful approaches to the airline’s board.
Castlelake’s latest all-cash offer values easyJet at 625 pence per share, representing a significant premium to the airline’s share price before takeover speculation emerged. The investment firm said it decided to make the proposal public so shareholders could assess the offer before a June 26 deadline for a formal bid.
easyJet’s board unanimously rejected the proposal, describing it as “opportunistic” and arguing that it undervalues the airline’s long-term prospects. The company also raised concerns about the bid’s structure, financing and regulatory complexity.
To comply with European airline ownership rules, Castlelake has proposed a structure that would leave majority ownership in the hands of EU nationals, including aviation executives Peter Bellew and Mark Breen. The firm says the deal is fully funded and would allow some existing shareholders to retain an equity stake if the airline were taken private.
The takeover battle comes as easyJet faces pressure from rising fuel costs and weaker travel demand linked to geopolitical tensions, while investors continue to debate whether the airline’s shares accurately reflect the value of its business and airport slots across Europe.
From economics and politics to business, technology and culture, Kursiv Uzbekistan brings you key news and in-depth analysis from Uzbekistan and around the world. To stay up to date and get the latest stories in real time, follow our Telegram channel.
