US investor proposes £6.90-per-share acquisition in new submission to UK budget carrier.
US-based investor Castlelake has made a new proposal for the acquisition of UK budget carrier EasyJet, and the airline’s board has signalled that — based on these financial terms — it would be prepared to recommend a formal offer to shareholders.
The proposal, made on 4 July, is the fifth to be submitted by Castlelake and is based on a £6.90-per-share acquisition.
EasyJet’s board says that, if Castlelake makes a firm offer based on these financial terms, it “would be minded” to recommend it to shareholders.
The deadline for putting forward such an offer has been extended again, to 3 August.
Castlelake has “emphasised its tremendous respect” for EasyJet and its intention to “support its future growth and transformation to a stronger, more resilient European airline”, says the carrier.
EasyJet adds that Castlelake would agree to a ‘best endeavours’ commitment in any co-operation agreement to obtain necessary regulatory clearances and approvals.
The latest proposal is subject to customary pre-conditions including completion of due diligence and the agreement of definitive transaction documentation.
“There can be no certainty that any firm offer will be made, even if any pre-conditions are satisfied or waived,” the carrier points out.
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