EasyJet has labelled a potential £3bn takeover bid by US investment firm Castlelake as 'highly opportunistic', as shares in the airline surged to their highest level in three months. The low-cost carrier said the approach came at a time when its share price was 'temporarily depressed due to the current situation in the Middle East and its impact on customer confidence and jet fuel prices'.
Castlelake, a Minneapolis-based private credit firm managing $36bn in assets, revealed on Monday it had taken a 2.14% stake in easyJet and was considering an offer of at least 403p per share, valuing the company at around £3bn. However, easyJet's board expressed confidence in its strategy, citing its cash position and profit outlook.
Shares in easyJet rose by as much as 12% in early trading on Monday, reaching 444.7p – well above Castlelake's minimum potential offer and the highest since March, before closing around 10% higher. Under City rules, Castlelake has until 5pm on 26 June to announce a firm intention to make an offer.
EasyJet warned of 'considerable regulatory, financial and other execution challenges' associated with a takeover, noting EU rules requiring European airlines to be majority owned by regional investors. RBC Capital Markets analyst Ruairi Cullinane said these rules 'could, at the very least, complicate a takeover of easyJet by Castlelake, if acting alone'.
The airline, headquartered in Luton with over 16,000 employees, has previously attracted interest from MSC and Wizz Air. Founder Stelios Haji-Ioannou, who remains the largest shareholder with a 15% stake, declined to comment. A takeover would mark another significant loss for the London stock market, which has seen exits by firms such as Ashtead, Flutter Entertainment, and CRH.
