easyJet plc (LSE: EZJ) has confirmed that it has reached an agreement in principle with Castlelake, L.P. on the key financial terms of a possible recommended cash offer for the airline.
The proposal, submitted by Castlelake on 4 July 2026, values easyJet at £6.90 per share in cash for the entire issued and to-be-issued ordinary share capital not already held by Castlelake. The possible offer also includes a partial unlisted share alternative.
easyJet said its board had reviewed the proposal with advisers and concluded that the financial terms were at a level it would be minded to recommend to shareholders, should Castlelake announce a firm intention to make an offer under Rule 2.7 of the Takeover Code.
Castlelake has also indicated that it would agree to a “best endeavours” commitment to obtain the regulatory clearances and approvals required to complete any transaction.
The US investment firm said it had strong respect for easyJet and its employees, and would support the airline’s future growth and transformation into a stronger and more resilient European carrier. Castlelake also said it supports easyJet’s fleet modernisation programme, describing it as central to the company’s long-term competitiveness, efficiency and sustainability objectives.
The possible offer remains subject to several customary pre-conditions, including satisfactory due diligence and agreement on definitive transaction documentation.
easyJet has requested, and the Panel on Takeovers and Mergers has approved, an extension to the “put up or shut up” deadline. Castlelake now has until 5.00 p.m. on Monday, 3 August 2026, to either announce a firm intention to make an offer or confirm that it does not intend to proceed.
Castlelake has reserved the right to vary the form or mix of consideration and, in certain circumstances, make an offer on less favourable terms. It may also reduce the offer price if easyJet declares or pays any dividend, distribution or other return of value to shareholders.
easyJet stressed that there can be no certainty that a firm offer will be made, even if the pre-conditions are satisfied or waived. Shareholders have been advised to take no action at this stage.
