FIFTH PROPOSAL BREAKS DEADLOCK AFTER MONTHS OF REJECTED BIDS

easyJet plc has announced that its Board is minded to recommend the financial terms of the latest takeover proposal from Castlelake, L.P., a global investment firm, following a joint announcement on 5 July 2026 in which both parties confirmed they had reached agreement in principle on the main financial terms of a possible cash offer. The proposal values easyJet at approximately £5.5 billion on a fully diluted basis, at £6.90 per share in cash, with an alternative option for shareholders to receive unlisted shares in lieu of cash.

The announcement followed a protracted approach process in which Castlelake’s first three proposals, made in late May and June 2026, were each rejected by the easyJet Board. A fourth proposal at £6.50 per share was formally rejected on 25 June 2026 on the basis that it undervalued the company, though at the same time the Board extended the regulatory deadline by which Castlelake was required either to make a firm offer or withdraw — the so-called put up or shut up (PUSU) deadline — and provided Castlelake with limited access to commercial information. A fifth, higher proposal was received on 4 July 2026, prompting the following day’s joint announcement.

REGULATORY TIMELINE AND THE LIMITS OF WHAT HAS BEEN AGREED

The easyJet Board has been careful to set clear limits on what the current agreement in principle represents. The Board has explicitly stated that there is no certainty that any firm offer will ultimately be made. Castlelake has agreed to use best endeavours in a cooperation agreement to be signed in due course to obtain the necessary regulatory approvals, but no binding commitment to proceed has yet been made. The PUSU deadline, under which Castlelake must either announce a firm offer or confirm it does not intend to make one, has been extended by the UK Takeover Panel to 5:00pm on Monday 3 August 2026, though this deadline could be further extended at easyJet’s request and with the Panel’s consent. The easyJet Board has advised shareholders to take no action at this stage.

CASTLELAKE’S STATED INTENTIONS AND FLEET MODERNISATION COMMITMENT

Castlelake has stated publicly that it has great respect for easyJet and its employees and that its intention, should a firm offer proceed, is to support the airline in growing into a stronger and more resilient European carrier. Castlelake has explicitly committed to supporting easyJet’s ongoing fleet modernisation programme, which involves the replacement of older aircraft with newer, more efficient types and is central to the airline’s long-term sustainability and competitive positioning. easyJet’s flight operations continue normally throughout the process, and the airline’s existing commercial and operational activities are unaffected by the approach.