U.S. investment firm Castlelake went public Monday with its £4.74 billion — roughly $6.26 billion — offer to acquire European budget airline easyJet, a move that comes after the airline turned down three separate proposals from the Minneapolis-based firm.
Castlelake, which oversees approximately $38 billion in assets and has poured more than $24 billion into aviation investments since 2005, said it made the bid public so that easyJet shareholders could evaluate its merits and share their opinions with the airline’s board before a June 26 deadline for a formal offer.
“Following the rejection of three proposals by the easyJet Board, and given its unwillingness to engage meaningfully, Castlelake is announcing this Third Proposal,” the company said in a written statement.
Attempts to reach easyJet for a response were unsuccessful.
The latest offer of £62.50 per share represents roughly a 57% premium over easyJet’s share price of £39.40 on May 29, which was the day before Castlelake first revealed its interest in the low-cost carrier. The current proposal follows two earlier bids of £56 and £60 per share respectively. Castlelake offered no indication of whether a fourth bid might be forthcoming.
Because European regulations require that airlines operating on the continent be majority-owned and controlled by EU nationals, Castlelake has brought in two aviation industry veterans to help structure the deal: Peter Bellew, the former chief executive of Malaysia Airlines, and Mark Breen, both of whom have held senior roles at various carriers.
The firm stated that its proposed ownership structure for easyJet is consistent with arrangements used by other European airlines to maintain full compliance with those regulations.
Castlelake also said it intends to offer a partial equity option, giving easyJet shareholders the opportunity to maintain a stake in the airline as a privately held company in partnership with the firm, though participation would be subject to a maximum cap.
