EasyJet stock jumped 10.4% to 616.2p after the British budget airline confirmed that its board had agreed in principle to a recommended cash takeover offer from Castlelake LP.
The Minneapolis-based investment firm offered £6.90 per share, valuing easyJet at around £5.5 billion on a fully diluted basis.
Takeover Premium Drives EasyJet Shares Higher
The announcement was made on Sunday, July 5, and quickly lifted investor sentiment.
EasyJet shares moved close to their 52-week high of 622.26p as traders priced in the takeover premium. The offer represents a premium of about 24% compared with Friday’s closing price of 558.2p.
Castlelake Wins Support After Five Bids
The proposed deal follows a long negotiation process between easyJet and Castlelake.
Castlelake first revealed its interest on May 29, 2026, with an opening offer of 560p per share. EasyJet’s board rejected the first four proposals, describing earlier bids as highly opportunistic.
However, the board said the fifth proposal had reached a level it would be prepared to recommend to shareholders.
EU Ownership Rules Shape Deal Structure
To meet EU airline ownership rules, Castlelake created an acquisition structure involving two EU nationals.
Former easyJet Chief Operating Officer Peter Bellew and aviation executive Mark Breen would hold a majority stake in the acquisition vehicle. Castlelake would retain a 49% stake.
The “put up or shut up” deadline has now been extended to August 3, 2026. By that date, Castlelake must either make a firm offer or walk away from the deal.
Analyst Caution Overshadowed by Deal Premium
JP Morgan reiterated a Sell rating on easyJet stock, with a 360p price target.
The rating reflected caution over the airline’s standalone fundamentals. However, the takeover premium largely overshadowed that concern in Monday’s trading.
UK Market Backdrop Supports Sentiment
The wider UK market also offered modest support.
The FTSE 100 edged 0.26% higher on the day, helped by signs of diplomatic progress over the Ukraine conflict following a Trump-Putin phone call during the weekend.
EasyJet Stock Nears 52-Week High
Overall, easyJet shares were lifted by several factors.
These included a board-backed takeover premium, strong merger and acquisition activity among London-listed companies, and a slightly positive market backdrop.
Together, these conditions helped create one of easyJet’s strongest single-day gains in recent memory. The move pushed the stock within a few pence of its 52-week high.
