EasyJet has rejected a potential acquisition offer from a prominent American investment group, labeling it as “highly opportunistic” and clarifying that no talks had occurred between the two parties.
The low-cost airline mentioned that Castlelake’s interest surfaced amidst concerns about the impact of the Iran conflict on fuel expenses and travel demand, leading to a decline in its share value.
Castlelake disclosed post stock market closure in London on Friday that it was contemplating a bid for easyJet following recent speculation. However, the firm emphasized that no formal approach had been made to easyJet’s Board and there was no guarantee of a bid materializing.
According to takeover regulations, Castlelake has until June 26 to either declare a concrete intention to make an offer or withdraw its interest.
In a statement on Monday, easyJet stated: “The board of easyJet has had no discussions with Castlelake, nor have they received any proposal from them.” The airline noted the timing of Castlelake’s interest coinciding with a temporary downturn in easyJet’s share price due to the Middle East situation affecting customer confidence and jet fuel costs.
Based in Luton, easyJet highlighted the complexities associated with a potential takeover, including regulatory, financial, and operational hurdles. Despite reporting a £552 million loss for the first half of the financial year, a 40% increase from the previous year, the airline remains optimistic about summer holiday demand, with a trend of late bookings continuing to be strong.
Commenting on the demand trend, Mr. Jarvis remarked: “We are observing robust demand, particularly in last-minute bookings. While cautiousness prevails for future bookings, the strong late booking trend is expected to persist throughout the summer.”