US investment firm Castlelake has confirmed that it will not make an offer for easyJet, ending its pursuit of the Luton-based low-cost carrier after its final proposal valued the airline at up to £6.90 per share on a fully diluted basis.
Castlelake’s decision follows the parties’ 5 July announcement that easyJet’s board was minded to recommend the proposal. It was made on 6 August, after the Takeover Panel had extended Castlelake’s “put up or shut up” deadline from 3 August to 5pm on Friday, 7 August, aligning it with Apollo’s deadline.
Castlelake said it was “very appreciative of the constructive engagement with the easyJet board” and its management team, and thanked them for their consideration of the proposal.
Castlelake had made five proposals since its initial approach, increasing its offer from £5.60 to £6.90 per share. The final proposal represented a premium of approximately 24% to easyJet’s 558.2p closing price on 3 July.
Following its withdrawal, Castlelake and parties acting in concert with it are restricted under Rule 2.8 of the UK Takeover Code from making a further approach, subject to limited exceptions.
These include the consent of the easyJet board, a material change in circumstances determined by the Takeover Panel, or a firm offer from a third party—specifically including Apollo Management X, L.P.
Castlelake’s withdrawal does not end the wider takeover process. Apollo remained under consideration with a possible £7.15-per-share offer, which easyJet’s board had agreed in principle to recommend. easyJet remained listed and continued to advise shareholders to take no action pending further developments.
