Easy Jet agrees in principle to Castlelake's approximately US$6.7 billion takeover bid
British low-cost airline easyJet recently announced that it has reached an agreement in principle on the acquisition offer proposed by US private equity firm Castlelake. Castlelake paid £6.90 per share in cash, valuing easyJet's equity at approximately £5.2 billion, with a fully diluted valuation of up to £5.5 billion (approximately US$6.7 billion), a 73% premium compared to when Castlelake first disclosed its intention on May 29. This is the fifth offer Castlelake has made. EasyJet has previously rejected four proposals of 5.60, 6.00, 6.25 and 6.50 pounds per share, calling it highly opportunistic. Until the fifth price increase, easyJet opened limited access to commercial data to the other party, and finally reached an agreement in principle on Sunday. EasyJet's board of directors said that if Castlelake submits a formal offer before August 3, the board will recommend that shareholders accept it. However, the statement also emphasized that it is not yet certain whether the formal offer will eventually be implemented. EasyJet is one of Europe's largest low-cost airlines, operating 355 aircraft, more than 1,200 routes and employing approximately 19,000 people. Affected by the soaring fuel costs and weak summer bookings caused by the conflict in the Middle East, the company's losses in the first half of the year widened to 377 million pounds, and the stock price fell by more than 30% in the past year. Castlelake manages approximately $38 billion in assets and is a major player in the aviation leasing field, leasing aircraft to approximately 200 airlines. In order to meet the requirements of EU aviation regulations that airlines must be majority-owned and controlled by EU nationals, Castlelake only holds 49% of the shares of the acquisition vehicle, and the remaining 51% is held by two EU industry figures, including former easyJet chief operating officer Peter Bellew.