EasyJet Rejects Fourth Takeover Bid From Castlelake
The airline cited undervaluation and concerns over the US investment firm's ability to complete a deal.
EasyJet has rejected a fourth takeover offer from U.S. investment firm Castlelake, valuing the airline at £4.93 billion. The company stated that the latest proposal, worth £6.50 per share, substantially undervalues the airline and raises questions about its feasibility.
EasyJet has given Castlelake a deadline of July 5 to either make a firm offer or withdraw its interest. The airline's board, after consulting with its advisors, concluded that the offer does not reflect the company's prospects. This rejection comes at a time when EasyJet's share price has been impacted by concerns over the conflict in Iran, having fallen approximately 30% over the past year prior to Castlelake's initial interest.
The airline also expressed ongoing concerns regarding Castlelake's ownership structure and its capacity to finalize any potential acquisition. EasyJet indicated that Castlelake would need to provide satisfactory assurances and commitments on these matters. Castlelake manages assets worth approximately $36 billion (£27.3 billion) and proposed a structure where EasyJet would be 49% owned by Castlelake and its co-investors, including Brookfield Asset Management, with the remaining 51% held by individual European Union investors.