Aug 3 - EasyJet said on Monday that the UK Takeover Panel has consented to a short extension of Castlelake's "put up or shut up" deadline, moving it from August 3 to August 7 so it now coincides with the deadline already facing Apollo. The move comes as the bidding contest for the budget carrier moves into what market participants expect to be a decisive week.
According to the company's statement, both suitors have continued to receive access for due diligence since the most recent proposal was submitted. EasyJet confirmed that diligence access has been provided to Apollo and Castlelake following the last set of bids.
EasyJet has formally backed the bid of Apollo Global Management, a proposal lodged in July valued at 5.7 billion (about $7.68 billion using the published conversion of $1 = 0.7422 pounds). That offer overtook Castlelake's earlier proposal of 5.5 billion. With the Takeover Panel's approval of the extension, both bidders now face the same deadline to either table a firm offer or withdraw.
Market observers describe the process as possibly entering its final stretch this week. The company and bidders face lingering uncertainties explicitly cited by market commentary - notably unresolved questions related to potential ownership configurations and the exit options available to existing investors. Those outstanding issues are described as clouding the path to a definitive deal.
Separately, easyJet reported a sharp weakening in profitability late in July, with third-quarter profit falling by 70 percent. The company attributed part of that performance to the impact of the Iran war, which contributed to volatile fuel prices and a degree of traveller caution. Despite the profit drop, the airline indicated conditions were improving heading into the peak summer travel season.
The synchronized deadlines and continuing access for due diligence set the scene for a compressed timeline in which both bidders must firm up their positions while stakeholders weigh the outstanding structural and exit questions identified by the company and market commentators.
Details at a glance
- The Takeover Panel approved Castlelake's deadline extension from August 3 to August 7.
- easyJet has provided diligence access to both Apollo and Castlelake since the last proposal.
- Apollo's 5.7 billion bid in July superseded Castlelake's earlier 5.5 billion offer.
- Third-quarter profit fell 70 percent, with the Iran war and fuel-price volatility cited as factors; the airline signalled improvement into peak summer.