EasyJet has knocked back a fourth takeover approach from US investment firm Castlelake, but has agreed to hand over ‘limited commercial information’ to tempt a better offer.
Under market rules, Castlelake had until 26 June to make a final offer or walk away, but the deadline has now been extended by nine days, giving Castlelake until 5 July to make an increased proposal.
The latest offer, made on 23 June, valued the airline at £6.50 a share, up from the £6.25 bid revealed on Monday (22 June).
EasyJet’s board unanimously rejected the latest bid, saying the offer undervalued the company.
In a statement to shareholders, easyJet said: “Castlelake stated that it hopes to be able to further improve its value following access to limited commercial information.
“Having carefully reviewed it with its advisers, the Board of easyJet continues to regard the fourth proposal as substantially undervaluing the company and its prospects and continuing to give rise to significant questions of deliverability. Accordingly, the Board of easyJet has unanimously rejected the fourth proposal.
“However, the Board believes that giving Castlelake access to limited commercial information, as Castlelake sought in the letter which contained the fourth proposal, might produce a more attractive proposal that better reflects the value of easyJet and its prospects and the interests of shareholders thereto.
“The Board continues to be concerned about the ownership structure and deliverability of any offer from Castlelake, and the time it will take, with the consequent meaningful impact on the present value of the offer price, to satisfy necessary conditions. The Board has informed Castlelake that it would expect satisfactory assurances and commitments in these regards.”
Castlelake said it, and partners including Brookfield Asset Management, would fund 49% of any successful bid, with the rest made up of investors including former easyJet Chief Operating Officer Peter Bellew and Mark Breen, Chief Executive of Dublin-based Oneiros Aerospace, who previously worked for Oman Air.
See also: EasyJet rejects £4.7bn takeover bid
