Castlelake continues to circle around easyJet, taking its latest offer directly to shareholders after the airline's board rejected a third bid valuing the company at £4.7bn.

"Following the rejection of three proposals by the easyJet Board, and given its unwillingness to engage meaningfully, Castlelake is announcing this third proposal to enable easyJet shareholders to consider its merits and provide their views on the third proposal to the easyJet Board," Castlelake said in a statement.

Under UK takeover rules, Castlelake must announce a firm intention to make an offer or walk away by 5pm on 26 June unless the deadline is extended by the Takeover Panel.

Castlelake disclosed this morning that it had submitted three non-binding proposals in June, increasing its offer from £5.60 to £6 and finally to £6.25 per share in cash. The latest proposal represented a 59% premium to easyJet’s share price before Castlelake’s interest became public and included an option for shareholders to retain a minority investment through an unlisted equity structure.

The investment firm said the offer would provide shareholders with certainty and reduce execution risk while supporting easyJet’s future growth under European ownership. Castlelake also outlined a proposed ownership structure designed to comply with EU airline ownership rules and said financing would be backed by committed equity and debt facilities.

Althouugh the new bid is above above easyJet’s share value, the company continues to reject the advances, arguing they significantly undervalue the business and its long-term growth prospects. Its board unanimously rejected all three approaches, describing the latest bid, much like the first, as "highly opportunistic" and arguing it had been made during a period of temporary pressure on the airline’s share price linked to disruption from the Middle East conflict.

The airline said Castlelake’s valuation failed to reflect its medium-term outlook, investment-grade balance sheet and strategy to deliver more than £1bn in pre-tax profit. The board added that it had concerns over the proposed ownership structure, financing assumptions and conditionality attached to the offer, and reiterated that shareholders should take no action at this stage.

Shares of easyJet, which has a market valuation of £3.9bn, rose between 2% and 4% after the £6.25 per share offer was made public.

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