EasyJet reaches agreement in principle over £5.2bn Castlelake takeover

EasyJet reaches an agreement in principle over a £5.2bn Castlelake takeover, with the US investment firm proposing £6.90 per share. The Luton-based low-cost carrier confirmed on Sunday, July 5, that its board had agreed on the proposal submitted on July 4, valuing the airline at roughly £5.2 billion. easyJet had rejected four previous Castlelake offers of £5.60, £6, £6.25 and £6.50 per share, and previously accused the bidder of trying to buy the company “on the cheap”. Castlelake holds a 2.14% stake via managed funds. The board said the new terms are at a value it would be minded to recommend to shareholders if a firm offer materialises. Castlelake must either announce a firm intention by 5pm on August 3 or drop the bid, with any final offer requiring a shareholder vote. Regulatory approvals are still needed, including an EU 51% European-ownership requirement.