easyJet Takeover Bid From Castlelake Goes Public
Castlelake's easyJet takeover bid went public after the board rejected its third proposal, forcing a shareholder decision and tightening the timetable.
KEY TAKEAWAYS
- Board unanimously rejected Castlelake's third 625p per-share proposal on June 21.
- Castlelake made the approach public to solicit shareholder support before the June 26 formal-offer deadline.
- The bid was framed as all-cash style with a partial-equity alternative to meet EU ownership rules.
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Castlelake offered 625p per share in a takeover bid valuing easyJet plc at £4.74 billion after the airline’s board unanimously rejected the suitor’s third proposal on June 21. The Minneapolis-based investor made the approach public on June 22 to let shareholders weigh in before the June 26 formal-offer deadline.
Board Rejection and Shareholder Solicitation
easyJet’s board described the third proposal as opportunistic and not in shareholders’ best interests, unanimously rejecting it on June 21, according to the company’s regulatory news release. After the rejection, Castlelake disclosed the offer publicly, aiming to engage shareholders directly and allow them to assess the bid’s merits before the formal deadline.
Offer Structure, Financing, and Bidding Process
Castlelake framed the proposal as an all-cash-style offer with a partial-equity alternative designed to comply with European ownership rules. The firm manages about $38 billion in assets and counts former Malaysia Airlines CEO Peter Bellew among its supporters. Castlelake said Goldman Sachs expressed confidence in arranging the required funding, which is expected to combine committed equity and debt.
This third proposal follows earlier bids at 560p and 600p per share, reflecting an escalating sequence. The contest remains at the pre-offer stage under the takeover timetable, with shareholder response set to determine whether Castlelake advances a formal offer. The outcome will also depend on whether the proposed partial-equity structure satisfies regulatory ownership constraints.
