London: British budget airline easyJet has agreed in principle to a sweetened takeover bid from US investment firm Castlelake, valuing the carrier at up to £5.5 billion ($7.34 billion).
According to Emirates News Agency, the new offer of £6.90 per share represents a 73% premium to easyJet's closing price on May 29. This was when the private equity fund manager disclosed its interest in the airline to British regulators, which has driven the shares up steeply since then.
On Sunday, easyJet's board announced that the latest bid was at "a value that the Board would be minded to recommend to easyJet shareholders." However, it added that Castlelake must submit its firm intention to make an offer by August 3.
EasyJet, which operates low-cost routes in 38 European countries, manages 355 aircraft across more than 1,200 routes.