Stock Markets June 22, 2026 02:33 AM

EasyJet Board Rejects Castlelake's Third Cash Proposal, Deadline Looms

US investor Castlelake's 625p-per-share approach is turned down again as the UK takeover timetable sets a final decision point

By Maya Rios
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EasyJet's board has turned down a third non-binding cash offer from Castlelake, L.P., this one at 625 pence per share. The rejection comes after earlier proposals of 560p and 600p were also dismissed. Under the UK Takeover Code, Castlelake has until 5 p.m. on June 26 to either make a firm offer or confirm it will not proceed.

EasyJet Board Rejects Castlelake's Third Cash Proposal, Deadline Looms
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Key Points

  • Castlelake has made three non-binding cash proposals to buy easyJet shares: 560p, 600p and 625p; the easyJet board rejected each approach.
  • The 625p proposal represents an approximate 59% premium to easyJet's 394p share price on May 28, the date Castlelake describes as the Undisturbed Date.
  • Under the UK Takeover Code, Castlelake must either announce a firm offer or say it will not make one by 5 p.m. on June 26; the Third Proposal is intended to be funded via equity and debt, with Goldman Sachs indicated as able to arrange debt financing.

Overview

EasyJet plc's board has again refused an approach from U.S. private investment firm Castlelake, L.P., which said on Monday that it had put forward a third non-binding indicative proposal valuing the airline at 625 pence per share in cash. This follows earlier, unsuccessful approaches from Castlelake at 560 pence and 600 pence per share.

Sequence of offers and board responses

According to Castlelake's statement, its initial non-binding proposal of 560 pence per share was rejected by the easyJet board on June 16. The firm then lodged a second non-binding indicative proposal at 600 pence per share; the statement describes that bid as being intended "to facilitate prompt engagement from the easyJet Board," but does not specify when that second proposal was turned down.

Castlelake's third proposal, at 625 pence per share, was also submitted as a non-binding indicative offer and, the firm said, was likewise intended to prompt quick engagement from easyJet's board. EasyJet's board rejected the third approach on June 21.

Premium and funding

In its announcement, Castlelake said the 625 pence proposal equates to a premium of approximately 59% compared with easyJet's share price of 394 pence on May 28, which Castlelake describes as the "Undisturbed Date." Castlelake added that the Third Proposal is expected to be fully funded through a combination of equity and debt facilities, and that Goldman Sachs has indicated an ability to arrange the necessary debt financing.

Regulatory timetable and uncertainty

Under the rules of the UK Takeover Code cited by Castlelake, the firm has until 5 p.m. on June 26 to either announce a firm offer for easyJet or to state that it does not intend to make one. Castlelake also made clear that its latest statement does not constitute a firm offer and that there is no certainty it will make a bid.

Share acquisitions disclosed

The statement notes that Peter Bellew acquired interests in easyJet shares at a highest price of 437.14 pence per share in transactions between March 20, 2026 and May 20, 2026.

What the statement does and does not say

Castlelake's disclosure lays out the sequence of indicative approaches, the proposed funding mix and the takeover timetable. It does not contain a firm offer, it does not specify the timing of the rejection of the second proposal, and it does not confirm whether a binding bid will be forthcoming.

Risks

  • No certainty of a binding bid: Castlelake's statement is explicit that it does not constitute a firm offer and that there is no guarantee a bid will be made - this creates uncertainty for shareholders and markets.
  • Financing conditionality: the Third Proposal is planned to be funded by a mix of equity and debt facilities; while Goldman Sachs has indicated it can arrange debt financing, that indication does not remove financing risk.
  • Regulatory and timing risk: the takeover timetable under the UK Takeover Code gives Castlelake a deadline of 5 p.m. on June 26 to declare its intentions, creating a compressed decision window for the market and stakeholders.

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