The board of easyJet has rejected the latest takeover proposal from US investment firm Castlelake, saying the offer still undervalues the airline.
Castlelake submitted its latest non-binding proposal on June 20, 2026, offering 625 pence in cash for each easyJet share. The proposal valued the UK-based low-cost carrier at £4.74 billion ($6.3 billion).
easyJet said its board unanimously rejected the offer on June 21.
The latest proposal followed two earlier approaches from Castlelake, the first offered 560 pence per share, which was rejected by easyJet on June 16, 2026. Castlelake then returned with a second proposal at 600 pence per share, which was also rejected.
“The Board believes the terms of the third proposal continue to fundamentally undervalue easyJet and its future prospects, and recommends that easyJet shareholders take no action at this time,” easyJet said.
The airline also repeated its view that Castlelake’s interest comes at an opportunistic time, with easyJet’s share price affected by the Middle East conflict, pressure on customer confidence and higher jet fuel prices.
Castlelake said its latest proposal represented a premium of about 59% to easyJet’s closing share price of 394.20 pence on May 28, the last business day before Castlelake first disclosed that it was considering a possible offer.
The investment firm said it had made the proposal public so easyJet shareholders could consider the offer before the UK takeover deadline.
Under UK takeover rules, Castlelake has until 17:00 London time on June 26 to either announce a firm intention to make an offer or walk away. The deadline can be extended only with the consent of the UK Takeover Panel.
Castlelake already owns 16,241,494 easyJet shares, representing approximately 2.14% of the airline’s issued share capital.
The firm said it believes easyJet would benefit from private ownership and long-term capital. Castlelake also said it had identified a structure intended to comply with European airline ownership and control rules.
Under that structure, the acquiring vehicle would be 49% owned by Castlelake and 51% owned by European Union nationals and potentially other investors, easyJet said.
However, easyJet said it has “considerable reservations” about the proposed ownership structure, as well as the leverage and conditionality of the offer.
The airline said the structure remains opaque and that the board does not believe Castlelake has provided enough detail to allow it to properly assess the proposal.
easyJet said it remains confident in its standalone strategy and is continuing to target more than £1 billion in annual profit before tax over the medium term.
The airline pointed to its investment-grade balance sheet, net cash position, fleet renewal plan and growth in easyJet holidays as reasons it believes the company is positioned to deliver long-term value for shareholders.
easyJet said 17 new Airbus A320neo-family aircraft are being delivered in its financial year ending September 2026, with another 73 A320neo and A321neo aircraft planned for delivery during the 2027 and 2028 financial years.
The airline also said easyJet holidays had already reached its previous target of £250 million in profit before tax and is now targeting £450 million by 2030.
Castlelake, based in Minneapolis, manages approximately $38 billion in assets and has a long history of aviation investments, including aircraft leasing and airline restructuring.