EASYJET says it is open to a takeover, despite dismissing interest from US investment fund Castlelake as “highly opportunistic”.
The budget airline is being circled after turmoil in the Middle East hit confidence in the travel sector and knocked easyJet’s share price.
Sign up for the Money newsletter
Thank you!
Easyjet says it is open to a takeover, despite dismissing interest from US investment fund Castlelake as ‘highly opportunistic’ Credit: Alamy
The budget airline is being circled after turmoil in the Middle East hit confidence in the travel sector and knocked easyJet’s share price Credit: Getty
Castlelake said on Friday it was in the early stages of mulling an offer for the Luton-based carrier.
It has not approached easyJet’s board yet.
The US private credit firm owns about 2.14 per cent of easyJet through shares held for funds it manages.
Yesterday, Castlelake said any offer would be worth at least 403.23p a share, valuing easyJet at £3.06billion.
PUMP PAIN
UK petrol prices hit highest level in over 3yrs as Iran war drives up oil costs
HOLEY MOLEY
Krispy Kreme to give away 26,000 free doughnuts in all UK stores this week
Its shares closed on Friday at 398p.
EasyJet said: “The board notes the highly opportunistic timing when easyJet’s share price is temporarily depressed due to the current situation in the Middle East and its impact on customer confidence and jet fuel prices.”
But the airline added it had a duty to maximise value for shareholders and would consider any firm proposal.
Castlelake has until 5pm on June 26 to make an offer under UK takeover rules.
EasyJet shares jumped as much as 12 per cent in early trading yesterday,
But they have slumped by more than 30 per cent over the past year.
GREEK BID FOR WILL HILL
U.S. investment giant TPG is being lined up to help finance a takeover of Evoke, which owns William Hill and 888, by a major Greek lottery and gambling firm.
Its credit arm could provide up to £800million to refinance Evoke’s debts if Athens-based Bally’s Intralot goes ahead with a bid.
The backing would “strongly increase” its chance of landing the London-listed gambling group.
Evoke has been under intense pressure from its heavy debt pile and a tax raid on the betting industry, leading it to axe 270 William Hill shops.
MORTGAGE HIT
HOMEOWNERS who came off five-year fixed mortgage deals last month faced an average £3,000 rise in annual repayments.
Many of them fixed their loans when rates were at historic lows during the Covid crisis.
They are now being forced to remortgage at a time of much higher interest rates — as markets panic over the war in Iran.
Hamptons said at least 500,000 could see monthly bills rise by more than £250.
SOLAR BUY-UP
DRAX is buying Bluefield Solar Income Fund for £561million as energy giants expand renewable power assets.
It will boost the power group’s UK green energy portfolio with solar plants, wind farms and small-scale turbines.
Bluefield shares jumped 16 per cent to 91.2p after the deal was announced.
Wars in Iran and Ukraine have forced a major rethink on fossil fuel reliance.
