News
Acquisition · Castlelake · EasyJet · Rejection
EasyJet PLC, the British airline, definitively rejected a third acquisition proposal of 625 pence per share from American private investment company Castlelake, LP, marking the latest refusal in a series of escalating offers for the company.
Castlelake's latest offer represented a significant 59% premium to EasyJet's share price of 394.20 pence as of May 28, the day before Castlelake's interest became public, and a 71% premium to the volume-weighted average share price of 365.42 pence from April 16 until the undisturbed date. Castlelake stated its proposal would substantially de-risk the execution of EasyJet's business plan and supports the airline's medium-term target of over GBP 1 billion profit before tax.
The investment company also asserted its offer compares favorably to the net present value of EasyJet's share price. EasyJet had previously rejected Castlelake's prior proposals of 600 pence per share and 560 pence per share.
The airline's consistent rejection indicates its board believes the company's intrinsic value or future prospects exceed even these significantly premium offers.