EasyJet has rejected a takeover offer from another airline, reported
to be low-cost rival Wizz Air.
The airline said in a statement, “The board recently
received an unsolicited preliminary takeover approach. This was carefully
evaluated and then unanimously rejected. The potential bidder has since
confirmed that it is no longer considering an offer for the company.”
“The indicative proposal took the form of a low premium and
highly conditional all‐share transaction which, in the board's view,
fundamentally undervalued the company. In deciding to reject it, the board took
into account all relevant factors including the highly conditional nature of
The news of the potential takeover offer was included in
the details of a £1.2 billion rights issue announced by the carrier today. It says the refinancing is necessary “to protect and strengthen easyJet's long‐term positioning
in the European aviation sector”.
Johan Lundgren, the airline’s chief executive, said
"The capital raise announced today not only strengthens our balance sheet
enabling us to accelerate our post‐Covid‐19 recovery plan but will also
position us for growth so that we can take advantage of the strategic
investment opportunities expected to arise as the European aviation industry
emerges from the pandemic.
"Since the onset of the pandemic, we have undertaken
decisive and robust action to restructure our operations, addressed our cost
base and secured our financial position, keeping our investment‐grade credit
rating. We have worked hard to maintain our customer friendly brand and network
and been rewarded with immediate growth in demand when travel restrictions have
"This capital increase will allow us to build on our
fundamental operational strengths and network strategy for our customers as
well as accelerate long‐term value creation for our shareholders."
The Financial Times has reported that the offer was made by
Wizz Air earlier this week announced a new managing
director for the UK, Marion Geoffroy, who replaces Owain Jones. Jones will become the
airline’s chief supply chain
and legal officer. The airline has launched a cluster of new UK routes in the
past year, opening new bases at Gatwick and Doncaster Sheffield.
EasyJet’s share price has fallen by 7.83 per cent since the