The £4.7 billion takeover bid tabled by Castlelake is poised to intensify pressure on EasyJet's leadership after the airline's board unanimously rejected the proposal for the third consecutive time. The valuation of £6.25 per share represents a 23% premium on EasyJet's current market price, significantly surpassing its closing value of £5.04 on Friday.
Castlelake has accused EasyJet of being "unwilling to engage meaningfully" in discussions over the bid, citing an earlier offer of £6 per share and a further proposal of £5.60 per share that was rejected by the airline's board. The private equity firm asserts that its offer would provide a substantial de-risking effect on EasyJet's business plan, offering a 59% premium when the first bid was tabled in April.
EasyJet had projected a pre-tax loss of between £540 million and £560 million at its April trading update, citing the conflict in the Middle East as a major contributing factor. The airline's chief executive noted that the conflict had resulted in a year-on-year worsening of the firm's first half financial performance.
EasyJet has defended its stance on the bid, describing Castlelake's timing as "highly opportunistic" and suggesting that the private equity firm is attempting to capitalise on the airline's temporarily depressed share price. However, data shows that EasyJet's shares have stabilised since a 20% drop earlier this year, now trading at £4.04.
Castlelake has set a deadline of 5pm on June 26th for investors to register their views on the proposal, after which it must either make a formal takeover bid or withdraw its interest in the airline.