Investors would participate in vehicle to ensure acquisition of budget carrier complies with European shareholder requirements.
Any firm proposal by US-based investor Castlelake to acquire EasyJet would have to meet European Union ownership requirements, even though the budget carrier is UK-based.
EasyJet had to establish an EU-based subsidiary — known as EasyJet Europe, located in Austria — to maintain access to the intra-EU aviation market.
Castlelake would need to ensure that the ownership criteria are preserved or risk loss of traffic rights.
It has indicated that two prominent EU nationals, Peter Bellew and Mark Breen, would serve as individual investors.
Bellew was formerly the chief operating offer of EasyJet, and had a similar post at Ryanair, while Breen has held senior board roles at budget carrier Flyadeal and other airlines, notably in the Middle East.
Breen founded the Irish-based consultancy Oneiros Aerospace.
Castlelake says it “respects the form, spirit and importance” of EU ownership requirements.
Bellew and Breen would invest and participate in the proposed acquisition of EasyJet through their ownership and control of an EU-domiciled company which would have a majority share in the overall structure.
Castlelake says Bellew has recently made investments in EasyJet with the acquisition of a relatively small number of shares over the course of March-May.
“This proposed structure is consistent with structures adopted by a number of other European airlines that are subject to the same EU ownership rules as [EasyJet],” says Castlelake.
“[We are] highly confident that the transaction will be structured and completed in full compliance with all applicable regulatory requirements, with any required formal approvals obtained swiftly.”
Castlelake says it aims to support EasyJet, respecting its “valuable” assets and sustaining its network.
EasyJet states that 51% of the proposed ownership vehicle would be held by EU interests — including potential investors whose identities have not been disclosed — and describes the structure as “opaque”.
About 15% of EasyJet is held by EasyGroup, the company associated with the budget carrier’s founder, Stelio Haji-Ionannu.
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