easyJet said its board unanimously rejected a fourth proposal from Castlelake received on June 23, comprising 650 pence per share in cash and a partial alternative under which shareholders could elect to receive unlisted, non-transferable, non-voting shares in a Castlelake vehicle.
The airline said the proposal undervalued the company and continued to raise significant questions on deliverability, including the time needed to satisfy conditions and the effect that timing would have on the present value of the offer. easyJet said it had nevertheless agreed to provide Castlelake with limited access to commercial information on the basis that this could support a revised proposal.
The UK Takeover Panel consented to extend the deadline for Castlelake to announce either a firm intention to make an offer under Rule 2.7 or that it does not intend to bid to 5:00 p.m. on July 5, 2026. Castlelake had previously disclosed three non-binding indicative cash proposals at 560 pence, 600 pence and 625 pence per share, all of which were rejected by easyJet.
Castlelake has also said there is no certainty that any firm offer will be made, and earlier disclosed that funds for which it acts as investment manager hold 16,241,494 easyJet shares, equivalent to about 2.14% of the company. In outlining a possible acquisition structure, Castlelake said the bidding vehicle would be 49% owned by Castlelake and co-investors including Brookfield Asset Management and 51% owned by EU nationals including Peter Bellew and Mark Breen, reflecting airline ownership and control requirements in the EU and UK.