US private credit group Castlelake has reached an outline agreement to acquire UK budget airline easyJet in a deal valuing the carrier at approximately £5.5 billion on a fully diluted basis. The preliminary agreement involves a cash offer of £6.90 per share, with shareholders having the option to receive unlisted shares in the private entity.

EasyJet's board indicated they would "be minded to recommend" the offer, a significant shift after rejecting four previous proposals from Castlelake that were deemed too low. The airline's shares climbed 11% in early trading following the announcement, though they remain well below pre-Iran war levels.

The proposed deal could allow founder Sir Stelios Haji-Ioannou to retain his 15% stake by rolling it into the private company. This structure may also simplify Castlelake's compliance with EU ownership regulations. The deadline for a firm bid has been extended to August 3.