Castlelake to ‘Consider Options’ as EasyJet Ownership Question Becomes Bidding War

EasyJet suitor Castlelake has confirmed it is considering its options “in respect of its possible offer” after the British airline tentatively accepted a higher proposed offer from a rival bidder over the weekend.

US firm Apollo Global Management tabled a £7.15 per share/£5.7bn proposal for EasyJet on Friday afternoon; an approach which the airline has agreed to in principle.

It also elevates the future ownership question around EasyJet into a bidding war.

Last week, EasyJet agreed, in principle, to a £6.90 per share/£5.5bn takeover proposal from US investment firm Castlelake and two Irish aviation businessmen; Peter Bellew and Mark Breen – EasyJet Tentatively Agrees to Irish-Fronted £5.5bn Takeover Approach | ittn.ie.

However, Apollo has the upper hand right now with EasyJet saying its proposal represented “a superior outcome” to investors.

Apollo has until 5pm on August 7 to make a firm bid for EasyJet or walk away from the process. Castlelake’s deadine to make a counter-proposal and firm offer is August 3.