Auto Amazon Links: No products found.
EasyJet has reached a preliminary agreement with a US investment firm regarding a potential takeover valued at approximately £5.2 billion. The Luton-based budget airline had previously dismissed four takeover bids from Castlelake, an investment firm holding about a 2.14% stake in EasyJet through its managed funds.
Earlier offers from Castlelake were priced at £6.50, £5.60, £6, and £6.25 per share, which EasyJet had criticized as undervaluing the company. However, on Sunday, EasyJet’s board and Castlelake announced they had agreed in principle on a proposal made on 4 July, with an offer of £6.90 per share. This agreement is not a finalized deal, as Castlelake must still secure regulatory approvals and other necessary consents for the transaction.
A key regulatory challenge involves EasyJet’s status as a European company, subject to EU regulations requiring at least 51% ownership to be held by a European entity. Castlelake, being a US-based firm, has stated plans to comply with these rules. The firm has until 17:00 BST on 3 August to declare a firm intention either to proceed with or abandon the offer. If an official offer is submitted, it will require approval through a shareholder vote.
EasyJet, one of Europe’s largest airlines, employs over 19,000 people and operates around 1,200 routes across 35 European countries. The airline has noted that its share price has been “temporarily depressed,” partly due to the impact of geopolitical tensions in the US, Israel, and Iran on travel demand. The stock closed last Friday at £5.58 per share, having dropped by more than 30% in the previous year before the first takeover proposal emerged in June. Castlelake manages assets totaling $36 billion (£27.3 billion). EasyJet highlighted that Castlelake “emphasised its tremendous respect for easyJet and its people, along with its intention to support its future growth and transformation to a stronger, more resilient European airline.”
Read the full article from The BBC here: Read More
Auto Amazon Links: No products found.