EasyJet has reached an agreement in principle to be acquired by a US investment firm in a deal worth about £5.5 billion.
The Luton-based airline had previously rejected four takeover approaches from Castlelake, which owns a stake of about 2.14% of the company through the funds it manages.
EasyJet’s board and Castlelake tonight said a proposed price of 690p per share table on Saturday would form the basis of an agreement and it has requested an extension to a deadline to complete the deal formally.
At that price it would mean an £800m payday for EasyJet’s founder, Stelios Haji-Ioannou, who still owns more than 15% of the company along with his family.
However, Castlelake needs to get regulatory clearances which could be troublesome. EasyJet is a European company, so by EU rules it needs to be 51% owned by a European company.
Castlelake has previously outlined how it would comply with this rule and has until 3 August to either announce a firm intention to make an offer or say it does not intend to do so.
EasyJet’s board said the financial terms of the proposed offer “are at a value that the board would be minded to recommend to easyJet shareholders”, should a firm offer be made.
It employs more than 19,000 people, and flies around 1,200 routes across 35 European countries.
In an earlier rejection of Castlelake it accused its suitor of taking advantage of the depressed share price resulting from the US-Iran war.
Castlelake, based in Minneapolis, Minnesota, is a US private equity investor founded by the American banker Rory O’Neill. The company specialises in asset-based lending, including leasing planes to airlines.
EasyJet shares closed on Friday at 558p.
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