Overview
EasyJet plc’s shares gained 2.74% on 22 June 2026 after the airline’s board rejected the latest non‑binding takeover proposal from U.S. investment firm Castlelake L.P., which valued the company at £6.25 per share.
Castlelake Proposals
Castlelake submitted three indicative offers to the board: an initial £5.60 per share proposal on 16 June, a second offer of £6.00 per share intended to prompt prompt engagement, and a third, “sweetened” offer of £6.25 per share received on 20 June. All three were rejected on the same day they were presented, with the board stating they were not in the best interests of shareholders. The third proposal represented an approximate 59% premium to EasyJet’s closing price of 394 pence on 28 May. Castlelake indicated the offer would be fully funded through a combination of equity and debt, with Goldman Sachs signalling its ability to arrange the required debt financing. The proposal also featured a partial alternative share class – unlisted, non‑transferable, non‑voting shares – to be held 49% by Castlelake and 51% by EU nationals and other undisclosed investors.
Board’s Rationale
EasyJet’s board described the proposals as “highly opportunistic” and fundamentally undervaluing the airline and its medium‑term prospects. It criticised the valuation methodology for relying on share prices affected by the Middle East conflict, short‑term earnings, and analyst reports, which the board said did not reflect EasyJet’s strong balance sheet and capital structure. Specific concerns cited were the elevated leverage and overall conditionality of the offer, as well as the opaque ownership structure of the proposed vehicle.
Financial Position and Outlook
The airline highlighted an investment‑grade balance sheet with a net cash position and a 46% increase in pre‑tax profit over the two full financial years ending September 2025. EasyJet reaffirmed its target of generating more than £1 billion of profit before tax.
Regulatory Timeline
Under the UK Takeover Code, Castlelake must either announce a firm offer for EasyJet or state that it does not intend to make one by 5 p.m. GMT on 26 June 2026.