CASTLELAKE MAKES £4.7BN EASJET BID PUBLIC AFTER BOARD REJECTIONS

Castlelake, a US investment firm based in Minneapolis, disclosed a £4.7bn takeover proposal for easyJet on Monday after the budget airline's board rejected three separate bids. The all-cash offer values easyJet at 625 pence per share, following earlier proposals at 560 pence and 600 pence that were also rejected. Castlelake stated it had chosen to make the bid public to allow easyJet shareholders to evaluate the offer before a takeover deadline on Friday. The company said the easyJet board had shown unwillingness to engage meaningfully with its proposals.

Castlelake manages $36bn in assets globally. Under City takeover rules, the firm has until 5pm on 26 June to announce whether it intends to proceed formally with an offer for easyJet. To comply with EU regulations requiring European airlines to be majority-owned by investors within the European Union, Castlelake has partnered with two European investors. Peter Bellew, a former chief operating officer at Riyadh Air, easyJet and Ryanair, and former chief executive of Malaysia Airlines, is one partner through his firm Dooks Capital. Mark Breen, chief executive of Dublin-based Oneiros Aerospace, is the second partner. Castlelake confirmed that the EU partner company would hold controlling shareholding in the overall acquisition structure.

The proposed bid represents continued efforts by Castlelake to acquire easyJet despite the board's rejection of multiple approaches. The company has indicated the third proposal would be structured to meet EU ownership requirements that remain in force following Brexit. Castlelake's public disclosure of the offer aims to put pressure on the easyJet board by appealing directly to shareholders.