EasyJet agrees 'in principle' to £5.2bn takeover deal
The revised £6.90-a-share offer would value easyJet at about £5.5 billion and needs shareholder and regulatory approval by Aug. 3.
- On Sunday, EasyJet announced an agreement in principle with Castlelake on a potential takeover worth around £5.2 billion, valuing shares at £6.90 each.
- The Luton-based airline previously rejected four takeover offers from Castlelake, which manages a 2.14% stake, as EasyJet's stock had fallen more than 30% in the past year.
- European rules require EasyJet to remain 51% owned by a European company, creating a significant regulatory hurdle that Castlelake must clear to proceed with the transaction.
- Castlelake has until 17:00 BST on 3 August to announce firm intention to make an offer or withdraw; any formal offer would require shareholder approval.
- EasyJet, which employs more than 19,000 people and flies around 1,200 routes across 35 countries, said Castlelake "emphasised its tremendous respect for easyJet and its people" regarding future growth.
102 Articles
102 Articles
Is EasyJet about to be taken over by the American investment fund Castlelake? After resisting for several months, the British low-cost airline, the second largest in Europe, has just signed an agreement in principle to be acquired for £5.5 billion, the equivalent of €6.4 billion. A firm offer must be submitted before August 3rd.
This is the fifth proposal of the United States entity on the low cost, which exceeds the previous offer by 6%.
Investor Castlelake is now offering £5.5 billion to the low-cost airliner. He claims to support the future growth of Easyjet. However, an expert expects the company to be destroyed.
EasyJet shares soar 10% on Castlelake’s $7.3B takeover bid for budget airline
EasyJet shares soared 10% Monday morning after the UK budget airline agreed to a $7.3 billion takeover proposal from US private-equity firm Castlelake, as low-cost carriers face a devastating jet fuel crunch.
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