easyJet has agreed the key terms of a possible takeover by US investment fund Castlelake, in a deal that values the airline at about 5.5 billion pounds.
The latest proposal stands at 690 pence a share. easyJet’s board said it intends to unanimously recommend the offer to shareholders once a formal bid is made.
If completed, the transaction would rank among the largest takeovers in the history of Europe’s aviation market.
The agreement marks a major step in a long-running ownership battle over one of Europe’s best-known low-cost airlines. easyJet has not yet received a formal offer, but the board’s backing gives Castlelake a significant advantage as it moves closer to a possible deal.
Castlelake is a US investment fund with a record of backing aviation assets, and the reported valuation suggests strong interest in easyJet’s brand, network and position in the European market. The airline has faced volatile conditions in recent years, including changes in travel demand, higher costs and intense competition across the short-haul sector.
Any final agreement would still need to clear a series of steps, including shareholder approval and regulatory scrutiny. But the board’s statement signals that the company sees the current terms as acceptable and worth presenting to investors.
The 5.5 billion pound valuation also highlights renewed appetite among private capital groups for established travel businesses with large customer bases and international routes. If the deal goes through, it would add to a wave of consolidation across the airline industry, where scale and access to capital have become increasingly important.
easyJet has been one of the most recognisable names in European aviation for more than two decades, operating a large network of short-haul routes across the continent. A change in ownership would mark a significant shift for the carrier and for the wider low-cost airline market.
For now, the proposed transaction remains conditional. But the agreement on terms, combined with the board’s planned recommendation, points to a deal that is moving closer to reality.
