After weeks of "tough luck," EasyJet has accepted the latest takeover bid from Castlelake , in a deal that could give a boost to one of the biggest names in European low-cost aviation.
The airline announced on Sunday, July 5, that its board of directors had reached a preliminary agreement with the American investment firm, which proposed paying £6.90 per share (US$9.21), valuing the company at over £5 billion (US$6.7 billion).
In the statement, EasyJet says that, after reviewing the terms of the proposal, the board concluded that the figures are at a level where it "would be inclined to recommend the offer to EasyJet shareholders, should the company [Castlelake] intend to make it."
The completion of the offer is subject to Castlelake fulfilling or waiving a series of preconditions, including the completion of due diligence. The American asset manager is expected to submit its final proposal by August 3rd.
The news cheered EasyJet investors. Around 9:21 am, the company's shares were up 9.57%, to £6.11 (US$8.16). Year-to-date, the shares have risen 19%, bringing the company's market value to £4.6 billion (US$6.1 billion).
The agreement rewards Castlelake's persistence, which submitted four other proposals for EasyJet. The American asset manager administers approximately US$38 billion in assets and has experience in aircraft leasing, including holding a stake of around 30% in the Danish airline SAS.
Castlelake first expressed interest in the airline at the end of May, submitting an offer of £5.60 per share ($7.47). Since then, the parties have been engaged in a public dispute.
EasyJet described the offers as "highly opportunistic," while Castlelake went so far as to claim that the company's board had shown "a lack of willingness to engage meaningfully," to the point of taking its proposal directly to shareholders.
At the end of June, EasyJet changed its tune after receiving the latest offer. The company granted a nine-day deadline, which ended on Sunday, for Castlelake to present its proposal and gain access to some of the company's data.
If the offer is accepted, Castlelake will have the mission of repositioning EasyJet in a competitive environment, marked by economic challenges and growth opportunities.
EasyJet, one of the leading names in low-cost aviation in Europe, has faced difficulties since the end of the Covid-19 pandemic.
Since 2021, the company's shares have traded below £7. EasyJet debuted on the London Stock Exchange in 2000, priced at £3.10 per share ($4.13). The shares reached an all-time high of £15.84 ($21.15) in early 2007, amidst an aggressive expansion across Europe, which was interrupted by the pandemic.
Recently, the company suffered from the effects of the war in Iran , which caused aviation kerosene prices to skyrocket, putting pressure on results. The conflict also hurt ticket bookings.
EasyJet closed the first half of fiscal year 2026, which ended on March 31, with an operating loss of £552 million (US$737.1 million), a 40.1% increase compared to the same period of the previous year.
