EasyJet’s board has rejected a third takeover proposal from U.S. investment firm Castlelake, this time valuing the budget airline at £6.25 per share, or roughly £4.74 billion ($6.26 billion).
EZJ stock climbed more than 5% in early Monday trading to £5.30, its highest point in nearly a year.
Castlelake, a Minneapolis-based aviation investor managing around $38 billion in assets, submitted three bids in quick succession — £5.60 on June 16, £6.00 shortly after, and £6.25 on June 20. The board rejected all three.
The latest offer carries a premium of approximately 59% to EasyJet’s share price of 394 pence on May 28, before Castlelake went public with its interest.
EasyJet’s board said the proposals “fail to reflect easyJet’s medium-term prospects, its strong balance sheet and capital structure.” It also flagged “considerable reservations” about the level of debt involved and described the ownership structure as “opaque.”
The airline pointed to a 46% increase in pre-tax profit over the two full financial years to September 2025 and said it is targeting more than £1 billion in profit before tax.
Castlelake decided to go public with the bid, saying EasyJet’s “unwillingness to engage meaningfully” left it with little choice. The firm said making the proposal public would allow shareholders to weigh its merits before the June 26 deadline under UK Takeover Code.
Goodbody Stockbrokers analyst Dudley Shanley noted there will be “increased pressure on the board this week.”
Castlelake said the bid is fully funded through equity and debt, with Goldman Sachs indicating it can arrange the required financing.
To get around European aviation ownership rules — which require EU carriers to be majority-owned and controlled by EU nationals — Castlelake has brought in former Malaysia Airlines and Ryanair COO Peter Bellew, along with Mark Breen, as EU-national partners.
The proposed structure includes a partial alternative for EasyJet shareholders to elect for unlisted, non-transferable, non-voting shares in a vehicle 49% owned by Castlelake and 51% by EU nationals.
EasyJet pushed back hard on this arrangement, calling the structure “opaque.” Shanley also noted that shareholders could be disappointed by the absence of a recognised European airline partner in the deal.
Castlelake argued its ownership model aligns with structures used by other European carriers for regulatory compliance.
Under UK Takeover Code, Castlelake has until 5 p.m. on June 26 to either announce a firm offer or walk away.
EasyJet said it “remains highly confident” in its strategy and is focused on its medium-term targets, including growing its holidays business.
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