Budget carrier easyJet signals caution over possible Castlelake bid

Budget airline easyJet has described a potential takeover approach by US-based investment firm Castlelake as “highly opportunistic,” while confirming that no discussions have taken place between the two parties.

The comments came after Castlelake, a private credit investment company, disclosed late on May 29—after the close of trading in London—that it was in the early stages of considering a possible offer for the airline. The firm said it had not yet approached easyJet’s board regarding a takeover proposal, dpa reports.

In a statement issued on Monday, easyJet said the timing of the interest coincided with a period of weakness in its share price, which has been affected by concerns over the impact of the conflict involving Iran on the aviation sector.

“The board notes the highly opportunistic timing when easyJet’s share price is temporarily depressed due to the current situation in the Middle East and its impact on customer confidence and jet fuel prices,” the airline said.

The Luton-based carrier also highlighted the significant obstacles that any takeover attempt would face.

EasyJet said it “notes the considerable regulatory, financial and other execution challenges associated with a potential takeover of easyJet.”

At the same time, the airline emphasized its responsibility to shareholders, stating that it would remain open to evaluating any formal proposal.

The company said it has a duty to maximize shareholder value and would “consider any proposal, should one be made.”

Under UK takeover regulations, Castlelake has until 5 p.m. GMT on June 26 to either submit a firm offer for easyJet or withdraw its interest.

By Vafa Guliyeva