EasyJet agrees to £5bn takeover by US investment firm | easyJet

EasyJet has agreed a £5bn takeover from US investment firm Castlelake, which will see the privatization of Britain’s largest low-cost airline.

In their statement to the stock exchange on Sunday evening, the companies announced that they had reached an agreement in principle and requested an extension of time for the agreement to be officially completed. The deal came after weeks of talks and many rejected offers.

The airline, a member of the UK’s FTSE 250 index of mid-sized companies, accepted the offer at £6.90 per share. EasyJet’s board said that if a firm offer were made it would be worth recommending it to shareholders.

EasyJet rejected the offer of £6.50 per share 10 days ago, saying the value of the business was significantly undervalued.

In a joint statement, Castlelake said it “highlights its great respect for easyJet and its employees, as well as its intention to support its future growth and transformation into a stronger, more resilient European airline, for the benefit of all stakeholders if the transaction is completed.”

Castlelake also said he supported easyJet’s plans to buy newer aircraft to modernize its fleet and reduce fuel costs.

Castlelake has until 5 p.m. on Aug. 3 to make a firm offer or leave.

More details to follow…