EasyJet has reached an ‘agreement in principle’ on the tender

EasyJet has reached an agreement in principle with a US investment company that could take up to 5.2 billion pounds.

Low-cost airline Luton has rejected four takeover offers from Castlelake, which previously held a 2.14% stake in EasyJet through managed funds.

He said those offers were £6.50, £5.60, £6 and £6.25 a share and had previously been priced. He accused Castlelake of trying to buy it “on the cheap”.

On Sunday, EasyJet’s board of directors and Castlelake said they had reached an agreement in principle on the proposal on July 4, at £6.90 per share.

But that doesn’t mean a deal is confirmed. Castlelake must now obtain regulatory approval and the necessary approvals for the transaction to proceed.

One significant regulatory hurdle is that EasyJet is a European company, so EU regulations require 51% European company ownership.

Castlelake is a US company, although it has previously explained how it strives to comply with this law.

He has until 17:00 BST on 3 August to declare his firm intention to make an offer or to say he does not intend to do so.

A shareholder vote is required if an offer is made.

EasyJet’s board said on Sunday that the financial terms of the proposed offer “are at a price the board would be able to recommend to EasyJet shareholders” should the firm offer a discount.

EasyJet is one of Europe’s largest airlines. It employs over 19,000 people, and flies around 1,200 routes in 35 European countries.

She previously said share prices were “temporarily depressed” – partly because of the impact of the US-Israeli war with Iran on the travel sector.

EasyJet shares closed at £5.58 each on Friday. EasyJet shares have fallen more than 30% in the past year before the initial public offering in June.

Castlelake has assets under management worth $36bn (£27.3bn).

Announcing the deal in principle, EasyJet Castlek emphasized his “great respect for EasyJet and its people, with its future growth and ambition to transform into a strong European airline.”