Following the commotion of the past few days regarding plans for the acquisition of easyJet by the American investment firm Castlelake, the airline, which initially remained tight-lipped, issued a statement saying it would consider any potential offer, if and when one is submitted.
According to reports that surfaced over the weekend, Minneapolis-based Castlelake is considering making an offer to acquire the British airline, which responded in a statement that Castlelake has not yet approached it, but if it does, it will “consider any proposal.”
The statement reads: “The easyJet Board of Directors has not held any discussions with Castlelake, nor has it received any proposal or approach from that company. The Board is firmly committed to maximizing shareholder value and will consider any proposal should one be submitted. In its evaluation, the Board will give particular consideration to the price and the feasibility of the proposal.”
According to easyJet, Castlelake’s announcement comes “at an extremely opportune moment, as easyJet’s share price is temporarily falling due to the current situation in the Middle East and its impact on customer confidence and jet fuel prices.”
He also added that there would be “significant regulatory, financial, and other challenges associated with the implementation of a potential acquisition of easyJet.”
“easyJet is in a strong position, underpinned by an investment-grade balance sheet with a net cash position, combined with high levels of customer satisfaction and strong employee loyalty. The Board of Directors maintains its full confidence in easyJet’s strategy and its ability to deliver attractive long-term value to shareholders. “The Company remains committed to achieving its medium-term target of pre-tax profits in excess of £1 billion,” the statement continued.
The same announcement also stated that “There can be no certainty that an offer will be made, nor as to the terms on which any offer might be made.”
Under U.S. law, Castlelake has until June 26 to submit a binding offer.
