By Yawen Chen
The budget airline may accept the US investment firm’s latest offer, worth £5.5 bln. It gives shareholders an exit that captures much of the laggard’s potential recovery. The bidder may think it can create more value, but shareholders are better off taking the money now.
Full view will be published shortly.
Follow Yawen Chen on Bluesky and LinkedIn.
CONTEXT NEWS
British budget airline easyJet said on July 5 it was prepared to accept Castlelake's revised bid of £6.90 per share, valuing the group’s equity at £5.5 billion.
EasyJet said Castlelake had agreed to a "best endeavours" commitment to obtain regulatory clearances and approvals.
EasyJet rejected Castlelake's four previous proposals calling them opportunistic attempts to buy the airline "on the cheap" and raised concerns over governance.
Castlelake must now formalise its offer for easyJet by August 3 or walk away under British takeover rules.
EasyJet shares were up 10.9% at £6.18 as of 0720 GMT on July 6.