EasyJet may soon have a new owner. The British low cost airline has confirmed that it reached a preliminary agreement with the American investment firm Castlelake, which has tabled an improved offer of £6.90 per share. The board considers the proposal strong enough to recommend to shareholders once it becomes a binding offer.
The deal would value EasyJet, Europe’s second largest low cost carrier after Ryanair, at roughly £5.5 billion. Castlelake, a Minneapolis based investment firm managing around $37 billion in assets with more than $24 billion invested in aviation, is aiming to add one of Europe’s leading airlines to its portfolio.
The negotiation is not finished yet. Before the deal can close, several steps remain, including due diligence and approval from the relevant authorities.
The fifth offer appears to be the winning one
This agreement comes after weeks of back and forth between the two sides. Castlelake had already submitted four previous offers to acquire EasyJet, all of which were rejected by the board as inadequate and as taking advantage of a weak period for the share price. According to the board, those earlier proposals exploited an unfavorable moment for the company, shaped by rising fuel costs and geopolitical tensions in the Middle East.
With the fifth offer, set at £6.90 per share, the board’s position shifted. The higher valuation was judged strong enough to open formal talks toward a possible acquisition.
Markets respond positively to the news
Investors welcomed the announcement as well. After the news broke on Sunday, EasyJet shares surged, gaining almost 10 percent in trading and climbing above £6.12 per share.
The market reaction reflects a belief that Castlelake’s offer finally recognizes the airline’s real value, after months in which the share price had been weighed down by external pressures rather than by the company’s actual performance.
Bellew and Haji Ioannou: two names to watch
One of the key figures in the deal is Peter Bellew, former CEO of Malaysia Airlines and former chief operating officer at EasyJet, who is now working alongside Castlelake on the acquisition plan. His deep knowledge of the airline and the industry has added credibility to the fund’s offer.
On the other side stands founder Stelios Haji Ioannou. The Cypriot entrepreneur still holds around 15 percent of the company’s shares and receives a royalty equal to 0.25 percent of revenue generated under the EasyJet brand. This gives him considerable influence over how the deal ultimately unfolds.
What still needs to happen before the sale is final
Despite the preliminary agreement, the sale of EasyJet is far from complete. Castlelake has until August 3 to decide whether to submit a binding offer or walk away from the negotiation entirely. In the meantime, the fund will be allowed to carry out due diligence, gaining access to the company’s confidential information.
Beyond the financial details, regulatory questions also remain. European rules require airlines operating within the EU to be majority owned by European parties, a requirement that will force careful structuring of the company’s future ownership. Only once these final hurdles are cleared can the acquisition truly be considered done.
