EasyJet PLC (LON: EZJ) has rejected suggestions that takeover talks are underway after US private equity firm Castlelake revealed it was considering a possible offer for the airline.
The FTSE 100 carrier said it has not held any discussions with Castlelake and has received no formal approach, although the board confirmed it would consider any proposal should one be made, with a focus on both valuation and deal certainty.
EasyJet described the timing of Castlelake’s disclosure as “highly opportunistic”, noting that its share price has been pressured in recent months by the impact of Middle East tensions on consumer confidence and aviation fuel costs.
The airline also highlighted the significant regulatory, financing and execution challenges that would accompany any potential takeover of one of Europe’s largest low-cost carriers.
Despite recent market volatility, easyJet said it remains financially robust, supported by an investment-grade balance sheet, a net cash position and a strategy aimed at delivering more than £1 billion of annual pre-tax profit over the medium term.
Castlelake, which currently owns approximately 2.14% of easyJet, confirmed on Friday that it was in the early stages of evaluating a possible offer but had not contacted the airline’s board. Under UK takeover rules, any bid would need to be made at a price of no less than 403.23p per share.
The Minneapolis-based investment firm cautioned that there is no certainty an offer will emerge, with the UK’s Takeover Code requiring it to either make a firm proposal or walk away by 26 June 2026.
Castlelake has until June 26, 2026, to announce a firm intention to make an offer.
