EasyJet agrees to £5bn takeover by US investment firm

EasyJet has agreed a £5bn takeover by US investment firm Castlelake that will see Britain’s biggest low-cost airline taken private.The companies announced an agreement in principle on Sunday evening in a statement to the stock market, and requested an extension to a deadline to complete the deal formally. The agreement came after weeks of negotiations and several rejected offers.The airline, a member of Britain’s FTSE 250 index of mid-sized companies, accepted an offer at £6.90 a share. If a firm offer is made EasyJet’s board said it would be minded to recommend it to shareholders.EasyJet had rejected an offer of £6.50 a share 10 days earlier, saying it substantially undervalued the business.In the joint statement, Castlelake said it “has emphasised its tremendous respect for EasyJet and its people, along with its intention to support its future growth and transformation to a stronger, more resilient European airline for the benefit of all stakeholders if the transaction proceeds to completion”.Castlelake also said it was supportive of EasyJet’s plans to buy newer planes to modernise its fleet and cut fuel costs.Castlelake has until 5pm on 3 August to make a firm offer or walk away.More details to follow …