Luton based low-cost carrier easyJet (U2/EZY) has agreed in principle to a £5.2bn takeover by US investment firm Castlelake after rejecting four previous offers.
The agreement will see Castlelake pay £6.90 per share for the airline, up from previous offers ranging from £5.60 to £6.50 which saw the the airline accusing Castlelake of trying to buy it on the cheap.
The deal, which is still subject to an formal offer being put to shareholders, is subject to regulatory approval and the management structure meeting the EU criteria which requires the airline to be 51% owned by EU nationals.
Despite being a US based investment group, Castlelake has put forward a proposal which will see the airline owned by two EU nationals.
Castlelake now has until the 3rd of August to make a firm offer which will be put to shareholders however the current offer is one that the easyJet board would recommend to shareholders.
Changing its view from previous deals, a spokesperson for easyJet said the new offer “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”
easyJet is the UKs largest airline by passenger numbers and employs around 19,000 people in the UK and Europe. Operating 1,200 routes across 35 countries the low-cost carrier is a key play in both the UK and European airline industry meaning that regulators will look closely at the deal before giving approval.
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