- easyJet rejected three takeover bids from Castlelake
- Castlelake proposes EU tie-up to ensure regulatory compliance
- Castlelake also plans to offer partial equity alternative
- Deadline for formal takeover offer set for June 26
June 22 (Reuters) - Castlelake on Monday disclosed its £4.74 billion ($6.26 billion) takeover bid for easyJet, backed by former Malaysia Airlines CEO Peter Bellew, after the budget carrier rejected three proposals from the U.S. investment firm.
Minneapolis-based Castlelake, which manages about $38 billion in assets and has invested more than $24 billion in aviation since 2005, said the publication would allow easyJet shareholders to consider the bid's merits and relay their views to easyJet ahead of a June 26 deadline for a formal offer.
"Following the rejection of three proposals by the easyJet Board, and given its unwillingness to engage meaningfully, Castlelake is announcing this Third Proposal," the firm said in a statement.
EasyJet could not be immediately reached for comment.
Castlelake's £6.25 per share proposal represents a premium of about 57% to easyJet's share price of £3.94 on May 29 before Castlelake disclosed its interest in the low-cost carrier and follows two previous bids of £5.6 and £6.0 each. Castlelake did not provide details for a possible fourth bid.
To navigate European airlines ownership rules, which require European carriers to be majority owned and controlled by EU nationals, Castlelake has partnered with Bellew and Mark Breen, executives who have held senior positions at various carriers.
Castlelake said its arrangement for easyJet's ownership is consistent with those adopted by other European airlines to ensure full regulatory compliance.
It also plans to offer a partial equity alternative, allowing easyJet shareholders to remain invested in the airline as a privately held business in partnership with the firm, subject to a maximum participation limit.
($1 = 0.7572 pounds)
Reporting by Yamini Kalia in Bengaluru; Editing by Mrigank Dhaniwala and Louise Heavens
Source: Reuters