EasyJet has rejected a new fourth bid from US investment firm Castlelake as still “substantially undervaluing” the company.
But the UK-based budget carrier is giving Castlelake access to “limited” commercial information in the hope that this might lead to a “more attractive proposal that better reflects the value of easyJet and its prospects and the interests of shareholders”.
Castlelake’s latest bid has seen it offer £6.50 per share in cash — up from its previous offer of £6.25 per share earlier this month. The new offer would value easyJet at £5.3 billion. EasyJet’s shares were trading at £5.78 on Friday (26 June).
EasyJet said in a statement: “The board continues to be concerned about the ownership structure and deliverability of any offer from Castlelake, and the time it will take, with the consequent meaningful impact on the present value of the offer price, to satisfy necessary conditions.
“The board has informed Castlelake that it would expect satisfactory assurances and commitments in these regards.”
Castlelake has proposed a bidding vehicle for easyJet that would be 49 per cent owned by Castlelake and other co-investors, while 51 per cent will be owned by EU nationals, including experienced airline executives Peter Bellew, who was previously chief operating officer of easyJet until 2022, and Mark Breen, who currently runs an aviation consultancy.
Even though easyJet is a UK company, which is currently listed on the London Stock Exchange, its ownership structure must still adhere to EU rules.