EasyJet has accepted a takeover offer from Castlelake, a US-based private equity firm, valuing the airline at £5.5bn. The agreement came after the airline’s board rejected four previous bids, with the accepted offer at £6.90 per share compared to earlier proposals as low as £5.60. The airline’s stock price immediately climbed nearly 10% following the announcement.
Castlelake indicated it intends to support easyJet’s existing strategy and has no plans to dismantle the company. The private equity firm signaled backing for the airline’s fleet modernization program, which it described as essential to the company’s long-term competitiveness and sustainability. The deal structure also permits current shareholders to maintain their investment under Castlelake’s ownership rather than forcing a complete divestment when the company delists.
EasyJet founder Stelios Haji-Ioannou, who holds approximately 15% of the airline through his family, has not yet publicly commented on the bid. Castlelake must file a formal takeover proposal by August 3 according to City takeover regulations.
Market commentators have noted the deal as part of a broader trend of foreign buyers acquiring undervalued British-listed companies. Analysts pointed to persistent underperformance of UK equities as contributing to the acquisition climate, with some describing the transaction as symbolic of concerns regarding foreign buyers acquiring iconic British firms. Other observers, however, characterized the bid price as offering shareholders good value while providing Castlelake with investment opportunities.
EasyJet operates from London Luton and Gatwick airports, employs 19,000 people, and transports approximately 93 million passengers annually. The airline’s shares had declined roughly 30% in the year prior to Castlelake’s bid interest becoming public.
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