EasyJet (EZJ) rose 9.28% in London trading after the U.K. budget airline agreed in principle to a 5.5 billion ($7.3 billion) takeover by Castlelake, a U.S. private credit firm and major airline lender, at 6.90 per share in cash. The offer represents a 73% premium to EasyJet's closing price on May 29, when Castlelake first disclosed its interest. The deal follows EasyJet's rejection last month of a lower 4.93 billion approach from the same bidder. The board said the latest proposal was "at a value that the board would be minded to recommend to shareholders."
To meet EU airline ownership rules requiring majority EU control, Castlelake previously proposed a structure where it would hold 49% of the acquiring vehicle with EU nationals Peter Bellew and Mark Breen holding the remainder, though that arrangement was not confirmed yet.
EasyJet operates 355 aircraft across more than 1,200 routes in 38 European countries, with valuable landing slots at Gatwick, Paris, and Geneva. The deal would take the 31-year-old airline off the London Stock Exchange at a time when the British M&A market is on course to set a record in 2026, as weaker London valuations attract private buyers.
Castlelake must make a firm offer by August 3 or walk away. Founder Stelios Haji-Ioannou, who holds roughly 15% and has a history of public clashes with management, has not indicated whether he will support the deal.