EasyJet Rejects Acquisition Offer
European airline EasyJet has turned down a £4.74 billion takeover bid from the US investment firm Castlelake. The airline described the proposed acquisition as "highly opportunistic," indicating that it did not view the offer as being in the best interest of its shareholders at this time.
Castlelake's Public Disclosure
Castlelake, which currently holds approximately a 2.14% stake in EasyJet through funds it manages, confirmed that it had made three separate approaches to EasyJet during the current month, all of which were rejected. Following these rejections, Castlelake decided to make the details of its latest offer public. The investment firm stated that its intention in doing so was to allow EasyJet's shareholders to independently assess the merits of the proposal.
"Following the rejection of three proposals by the EasyJet Board, and given its unwillingness to engage meaningfully, Castlelake is announcing this Third Proposal to enable EasyJet shareholders to consider its merits," Castlelake stated. The firm believes its latest bid "offers compelling value" to shareholders.
Details of the Offer and Regulatory Compliance
Under Castlelake's most recent offer, EasyJet shareholders would receive 625p per share. This figure represents a 24% premium compared to EasyJet's closing share price on the preceding Friday. Castlelake has a deadline of this Friday to either present a firm offer or withdraw its proposal.
The US firm also addressed the regulatory requirements for European airlines, which mandate that EasyJet must maintain majority ownership by EU citizens. Castlelake asserted that it had put forward an ownership structure that would constitute a "deliverable solution to ensure compliance with all applicable regulatory requirements," thereby allowing EasyJet to continue operating as a robust European airline under European control.
Source: EasyJet rejects £4.7bn takeover offer from US investment firm