Castlelake and easyJet Group have reached an agreement in principle which, if finalised, will see the financial company acquire the low-cost carrier for GBP6.90 pounds (USD9.20) per share. The total value of the deal will reach GBP5.23 billion (USD6.9 billion).

Both parties underlined that the agreement is tentative, and stressed there is "no certainty that any firm offer will be made, even if any pre-conditions are satisfied or waived." They concurrently agreed to extend the deadline for a binding bid until August 3, 2026.

The US financial firm has been in talks to acquire the LCC since late May. easyJet Group rejected the previous four offers, which gradually increased the bid from GBP5.60 per share to GPB6.50 (USD7.50-8.70). However, after rejecting the fourth bid, it granted Castlelake access to "limited financial information" in an ultimately successful attempt to solicit a higher price.

According to an earlier disclosure by Castlelake, the fund will team up with other co-investors, including Brookfield Asset Management and industry veterans Peter Bellew and Mark Breen. Bellew and Breen, both Irish nationals, would take a 51% stake, ensuring compliance with EU control and ownership rules, while Castlelake and other co-investors would have a 49% stake.

Castlelake currently holds approximately 2.1% share in easyJet Group. The US firm is also a major shareholder in SAS Group, in which it owns a 32% stake.