The board of easyJet has reached an agreement in principle relating to Castlelake’s fifth takeover offer.
They have agreed to a cash offer, under which the US-based investment firm will acquire easyJet’s remaining share capital for £6.90 per share. That means the takeover will cost £5.5 billion.
The airline’s board released an update on the possible offer and the extension of the put up or shut up (PUSU) deadline on July 5.
Castlelake is now required to announce its intention to proceed with the offer, or to withdraw, by 5.00 pm on Monday, August 3.
Regulatory conditions must be fulfilled for the deal to go ahead. Those include complying with a requirement for the company to have at least 51% ownership by a European entity.
The airline board’s announcement states that “Castlelake is supportive of easyJet’s fleet modernisation programme.” That is regarded as central to “long-term competitiveness, efficiency and sustainability objectives.”
At present, easyJet operates 1,273 routes and a fleet of 356 aircraft.
