easyJet shares traded higher with the Castlelake takeover deadline approaching.
LONDON, June 24, 2026, 16:02 (BST)
- easyJet shares up 1.9%, trading near 539.6 pence
- The 625-pence per share bid from Castlelake, which the airline turned down, would have valued the company at £4.74 billion.
- Bidder has until 5 p.m. London time on June 26 to meet the deadline
easyJet shares were up almost 2% Wednesday as investors waited for Castlelake to decide on a possible takeover. Late in the London session, the stock changed hands near 539.6 pence, which is still 13.7% short of what Castlelake has put on the table.
easyJet turned down a new 625 pence a share bid from the U.S. investment firm, made June 20. This was the firm’s third non-binding offer. easyJet had already said no to earlier bids of 560 pence and 600 pence. The most recent offer puts easyJet’s value at about £4.74 billion.
EasyJet’s board called the bid an attempt to buy the airline “on the cheap”, saying the offer didn’t reflect its medium-term outlook. The board also questioned Castlelake’s planned ownership structure. Investegate
Some top shareholders are holding out for a price of at least £7 per share before easyJet starts talks, the Financial Times said. That would put easyJet’s value at around £5.3 billion, about £600 million more than Castlelake has on the table right now.
“There will be increased pressure on the board this week,” Dudley Shanley, analyst at Goodbody Stockbrokers, said. Shanley also said shareholders might be let down by the fact Castlelake hadn’t added a European airline. Air France-KLM and IAG, which owns British Airways, had been mentioned as possible bidders, but neither is included in the plan. Reuters
Takeover rules give Castlelake a “put-up-or-shut-up” deadline of 5 p.m. London time on Friday to make a firm bid or walk away. Castlelake said it went public because of what it sees as easyJet’s “unwillingness to engage meaningfully,” asking shareholders to share their opinions with the board. Travel Weekly
Castlelake said it plans to fund the deal with a mix of equity and debt. The buyout vehicle would be 49% owned by Castlelake, with the other 51% in the hands of EU nationals, including ex-easyJet exec Peter Bellew and aviation veteran Mark Breen. EU law requires airlines to be majority-owned and controlled by EU nationals to keep their licenses.
easyJet said it had £4.7 billion in liquidity and £434 million net cash as of March 31. Headline pretax profit was up 9% to £665 million for the year to September 2025. The airline is aiming for more than £1 billion in headline pretax profit over the medium term.
Castlelake can still pull out or try for more time. easyJet has raised issues over the debt planned for the deal and its terms. The airline has also taken a hit from turmoil in the Middle East, putting the stock at risk of losing its takeover premium if a firm bid doesn’t appear.
