easyJet (AO) | Hold | Castlelake's offer looks unexciting.

Research evidence excerpt

easyJet (AO) | Hold | Castlelake's offer looks unexciting.

News comment

Release date: 22 June 2026

Marc Zeck, CFA

Equity Research Analyst

+ 49 69 7569 6323

mzeck@keplercheuvreux.com

HoldeasyJet

United Kingdom | Airlines & airports MCap: GBP3.8bn

Target Price: 400p Bloomberg: EZJ LN Reuters: EZJ.L

Current Price: 504.00p Free float 83%

Up/downside: -20.6% Avg. daily volume (GBPm) 3,785.6

YTD abs performance -1.3% Market data: 19 June 2026

52-week high/low (GBP) 539.00/339.70

Castlelake's offer looks unexciting.

Key points:

Castlelake went public with a possible takeover offer for easyJet at 625p per share, which is a 24% premium to the last closing

price. This is not yet a firm offer under Rule 2.7 of the UK takeover code. Castlelake still needs to make a firm offer or walk away by

5pm London time on 26 June.

The company partners with EU nationals Peter Bellew and Mark Breen to satisfy EU regulatory requirements.

The newest offer was already rejected by easyJet. With the announcement, Castlelake also disclosed that its first offer to easyJet

was 560p, submitted 12 June, a second offer worth 600p was submitted 17 June, and the third offer of 625p was submitted 20

June and subsequently rejected by easyJet.

In our view, this is an unexciting offer. While Castlelake claims that the offer values easyJet at a 59% premium to the undisturbed

share price before its interest became known on 12 June, the entire airline space has moved up significantly since peace talks in

Iran started about a week ago. In our view, the actual premium is much closer to 24% than to 59%.

We believe Castelake's partners seem uninspiring when compared to potential partners, such as MSC or European flag carriers, at

least when it comes to their financial firepower.

What is in the announcement