easyJet’s board has agreed to recommend a proposed £5.5 billion takeover by US investment firm Castlelake, following a series of offers made over recent weeks.
The recommended bid values the airline at 690 pence per share and is supported by Castlelake alongside investment partners Brookfield and Goldman Sachs. It follows four earlier proposals that were rejected before the two sides reached agreement in principle on the financial terms.
The announcement is of particular interest in Monaco as the airline was founded by Monaco-based businessman Sir Stelios Haji-Ioannou, who remains its largest shareholder with a stake of around 15 per cent. Based on the proposed offer price, that holding would be worth approximately £780 million.
easyJet’s shares rose following news of the recommended offer, although the transaction is not yet finalised. Castlelake has until Sunday, August 3, to submit a formal bid.
Any takeover must also satisfy European Union ownership and control requirements, which stipulate that EU airlines must remain majority owned and controlled by European nationals. Castlelake has indicated it intends to meet those rules by working with former easyJet executive Peter Bellew, an Irish national, through a European-controlled investment structure.
In recent months, easyJet’s board has maintained that the airline has strong long-term growth prospects, although some investors had suggested a higher offer would more accurately reflect the company’s value.
Sir Stelios has not publicly commented on the proposed transaction or indicated whether he intends to support the offer.
If the acquisition proceeds, easyJet would move from being a publicly listed company to private ownership, subject to shareholder approval and the necessary regulatory clearances.
