This is not the first bid from Castlelake, which has reportedly made three approaches to acquire EasyJet this month alone. All prior offers have been firmly rejected by the airline. Castlelake’s current proposal suggests a buyout at 625p per share, representing a notable 24% premium over EasyJet's closing price last Friday. However, EasyJet remains skeptical.
Castlelake’s Position
Castlelake, which owns around 2.14% of EasyJet through its managed funds, believes that its proposal provides significant value to shareholders. After being denied meaningful engagement from the EasyJet Board, Castlelake decided to go public with its latest approach to facilitate shareholder scrutiny.
“Our ambition is to bolster EasyJet as a resilient European airline under European governance, while also recognizing and sustaining its valuable assets and network,” said a spokesperson for Castlelake.
Ownership Structure and Compliance
In line with European Union regulations mandating that EasyJet must be majority-owned by EU nationals, Castlelake has proposed a partnership with two European businessmen—Peter Bellew and Mark Breen. Bellew, a former chief operating officer of EasyJet, and Breen, who has held numerous senior roles in the airline industry, are set to establish control through an EU-based entity.
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However, EasyJet has described this proposed ownership structure as 'opaque' and casts doubt on the feasibility of the takeover. The airline states that Castlelake's plan lacks clarity, hindering any valid assessment of its potential effectiveness, thus reinforcing its decision to decline the bid.
The Future for EasyJet
As one of Europe’s largest airlines, EasyJet flew over 90 million passengers last year across more than 1,200 routes in 38 countries. The company is now focused on navigating the current turbulent market climate while defending its independence against unsolicited takeover attempts.
For more details, visit BBC News.
Source: BBC News - Business
