EasyJet has rejected any potential acquisition by investment firm Castlelake, following an announcement from the US-based firm on Friday that it was in the early stages of considering a possible offer for the budget airline.
The carrier’s board on Monday (1 June) issued a statement declaring it has not had any discussions with, nor received any approach or proposal from Castlelake.
“The board is clear in its duty of aiming to maximise shareholder value and will consider any proposal, should one be made. In any assessment, the board will be especially mindful of its valuation and deliverability,” it said.
The UK-based carrier also described the announcement as “highly opportunistic,” noting that its share price is “temporarily depressed” due to ongoing developments in the Middle East. Despite posting widening losses in the year's first half, airline executives last month reaffirmed their confidence in meeting the carrier’s medium-term goal of achieving more than £1 billion in profit before tax.
This sentiment was reiterated in the board’s statement on Monday, which advised shareholders to "take no action at this time".
“EasyJet is in a position of strength, underpinned by an investment grade balance sheet with a net cash position, alongside strong customer satisfaction and high employee engagement. The board remains highly confident in easyJet’s strategy and its ability to deliver attractive long-term value for shareholders,” the statement said.
Castlelake, which already owns a 2.14 per cent stake in easyJet and a majority share in Scandinavian carrier SAS, indicated late on Friday that it is considering making a takeover bid for the UK airline. However, the firm also noted that there is no certainty that an offer will be made.
Under UK takeover rules, Castlelake must offer at least 403.23 pence per share for easyJet, reflecting the price paid for its current 2.14 per cent holding. The rules further state that Castlelake must either announce a formal offer or declare it will not proceed by 5pm on 26 June.