British low-cost airline easyJet said in a statement published on Monday that US-based private investment firm Castlelake’ had registered interest in the possible takeover. After the news, the airline's shares are in early transactions %Increased by more than 12’.
Castlelake confirmed the rumors on Friday, saying that “ is in the early stages of evaluating a possible proposal, stressing that no approach has yet been taken to the easyJet board of directors. “There can be no certainty as to whether any offer will be made or the terms of any offer.”
The British low-cost airline, “, said in a statement that it was clear about the Board's task of targeting maximizing shareholder value and would consider any proposals if they were made. However, “ added that the Board would be particularly careful about its valuation and deliverability in any assessment.
Dan Coatsworth, market manager at AJ Bell, said “EasyJet’'s largest shareholders are unlikely to accept a takeover offer unless there is a knockout price.
Coatsworth said the airline is facing its toughest period since the Covid-19 pandemic, largely due to rising jet fuel prices linked to the closure of the Strait of Hormuz ’ following the conflict involving Iran’.
The airline's statement also stated: “Kurul points out the extremely opportunistic timing when easyJet’'s share price temporarily falls due to the current situation in the Middle East’ and its impact on customer confidence and jet fuel prices.”
easyJet shares in London’ on Monday morning %In 12 increments, 445.80p was traded from ’. Due to increased fuel costs and travel cuts caused by conflicts in the Middle East’, there has been a 23 percent drop in the last 12 months.
EasyJet added that “ remains in a strong position, backed by strong customer satisfaction and high employee engagement, as well as a net cash position, an investable balance sheet, and is highly confident in the company's strategy and ” ability to deliver attractive long-term value to “ shareholders.
“Board highlights significant regulatory, financial and other implementation challenges related to the potential takeover of easyJet’.”
Coatsworth, “Given its history of investment linked to the aviation industry, there is a logic to Castlelake’'s interest in this business, ” said. The biggest unknown is whether easyJet will want to run “ in its current form or simply reverse it when market conditions improve.’
Under UK takeover rules, Castlelake’ has until 26 June’ to either make an official offer for easyJet or announce that it has no intention of continuing.
