Announcement
EasyJet plc announced that its board has unanimously rejected the fourth takeover proposal submitted by Castlelake L.P., extending the statutory "Put Up or Shut Up" deadline by nine days.
Offer Details
The fourth proposal, received on 23 June 2026, valued EasyJet at 650 pence per share in cash and offered shareholders a partial alternative to receive unlisted, non‑transferable, non‑voting shares in a vehicle within Castlelake’s structure. Earlier proposals had been valued at 560 pence, 600 pence, and 625 pence per share, all of which were also rejected; the two most recent were described as "unanimously rejected as not being in the best interests of shareholders."
Board Response
The board characterised the fourth proposal as "substantially undervaluing the Company and its prospects" and raised "significant questions of deliverability." While the board declined the offer, it agreed to grant Castlelake limited access to commercial information, stating that such access "might produce a more attractive proposal that better reflects the value of easyJet and its prospects." The board also expressed concerns about the ownership structure and the time required to satisfy the offer’s conditions, noting that these could have a "consequent meaningful impact on the present value of the offer price."
Share Price Reaction
Following the board’s announcement, EasyJet shares rose by over 5%, with the ticker EZJ gaining approximately 6.78% during intraday trading.
Extension and Conditions
The Panel on Takeovers and Mergers consented to a nine‑day extension of the Put Up or Shut Up deadline. Castlelake must, by 5:00 p.m. on Sunday, 5 July 2026, either announce a firm offer under Rule 2.7 of the UK Takeover Code or confirm that it does not intend to bid.
Ownership Structure of the Bidding Vehicle
The proposed bidding vehicle would be owned 49% by Castlelake and co‑investors, including Brookfield Asset Management Ltd., and 51% by EU nationals, specifically Peter Bellew and Mark Breen.
EasyJet’s Financial Position
EasyJet reiterated that it is "in a position of strength," citing a solid net cash position and a strategic target of more than £1 billion profit before tax.
Contextual Note
The board’s rejection and the extension of the deadline underscore ongoing negotiations and the regulatory framework governing UK takeovers, with the company maintaining its stance on valuation and deliverability concerns.