EasyJet Agrees to $6.94 Billion Sale to US Private Equity Firm Castlelake

After previously rejecting four offers from the American private equity firm Castlelake, British low-cost airline EasyJet announced on Sunday that the two parties have reached a preliminary agreement. Under the proposal, Castlelake will acquire EasyJet at 6.9 pounds per share, valuing the company at approximately 5.23 billion pounds (6.94 billion US dollars). Earlier offers ranged between 5.6 and 6.5 pounds per share, which EasyJet had criticized as attempts to undervalue the company.

EasyJet stated that the latest offer is at a level the board is willing to recommend to shareholders. However, the deal is not finalized yet. Both sides have requested an extension until August 3 to complete the transaction formally. By then, Castlelake must submit a firm offer and obtain regulatory approvals. Since EasyJet is a European company, EU rules require that at least 51% ownership remains with a European entity, meaning Castlelake will need to find a European partner.

Claudia Sender, a Castlelake representative, expressed great respect for EasyJet and its employees, emphasizing the firm's intention to support EasyJet's future growth and transformation into a stronger, more resilient European airline if the deal closes. Castlelake also supports EasyJet's plans to renew its fleet with new aircraft to reduce fuel costs. Currently, Castlelake holds about a 2.14% stake in EasyJet through its managed funds.

Meanwhile, EasyJet's stock, traded on the London Stock Exchange, has risen about 55% over the past three months but still shows a 28% decline over the last five years. The company's market capitalization stands at 4.17 billion pounds.