Castlelake takes rejected easyJet bid public

Castlelake has disclosed a third non-binding takeover proposal for easyJet, valuing the low-cost carrier at 625 pence per share. The offer implies a total equity valuation of about £4.74 billion. The investment firm chose to make the proposal public after a series of failed attempts to secure engagement from easyJet’s board.

The latest proposal follows three separate approaches that easyJet’s board has rejected. Castlelake characterised the board as unwilling to engage meaningfully, and said that publicising the terms would allow shareholders themselves to evaluate the merits of the offer.

Castlelake stated that the 625 pence per share price represents a premium of about 57% to easyJet’s share price of 394 pence on 29 May 2026. The firm framed this level as a significant uplift relative to that reference price. On this basis, the proposal values the airline at roughly $6.26–6.3 billion.

The proposal remains non-binding and does not yet constitute a formal takeover offer under the UK Takeover Code. Castlelake has made clear that there can be no certainty that a firm bid will ultimately be made, leaving the current approach at an indicative stage.

Under the UK Takeover Code, Castlelake has until 5:00 p.m. on 26 June 2026 to either announce a firm intention to make an offer for easyJet or state that it does not intend to proceed. This so-called “put up or shut up” deadline sets a clear timeframe for the next step in the process.

If Castlelake decides not to move forward with a firm offer by that deadline, it would be constrained from making another approach for a period defined by the code. As a result, the coming days are a critical window for determining whether discussions transition from indicative to formal.

Castlelake said the proposal is backed by airline executive Peter Bellew, a former chief executive of Malaysia Airlines. The involvement of an industry figure is positioned as part of the consortium’s aviation expertise supporting the bid.

The firm also stated that it has structured the proposal with partners to comply with European Union ownership rules. These rules govern the level of EU ownership and control required for airlines operating within the bloc, making the ownership structure a key element of any potential transaction.

With the proposal now public, easyJet shareholders have visibility on the price and key terms Castlelake is willing to consider. The board’s previous rejections and the bidder’s criticism of limited engagement set the backdrop for any future dialogue.

The decision now hinges on whether Castlelake converts its indicative approach into a firm offer by the 26 June 2026 deadline, and how easyJet’s board responds if it does. Until then, the situation remains fluid, with no assurance that a definitive bid will emerge.