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EasyJet announced an agreement in principle to accept a £5.5bn takeover offer from the US investment firm Castlelake.
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The proposed takeover price is £6.90 per share.
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The deal would take the company private.
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EasyJet rejected a previous offer of £6.50 per share ten days prior to the new agreement.
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EasyJet stated the previous offer of £6.50 per share substantially undervalued the business.
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An earlier bid was valued at £5.60 per share.
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EasyJet's shares closed at £5.58 on Friday.
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The closing share price of £5.58 gave EasyJet a market value of £4.2bn.
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Stelios Haji-Ioannou and his family own more than 15% of EasyJet.
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If the deal completes, it could be worth nearly £800m for Stelios Haji-Ioannou.
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The last time EasyJet's shares traded above £6.90 was in early 2022.
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Castlelake is based in Minneapolis, Minnesota.
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Castlelake was founded by American banker Rory O'Neill.
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Castlelake specialises in asset-based lending, including leasing planes to airlines.
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Castlelake holds a stake in Scandinavian airline SAS obtained via debt restructuring.
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EasyJet is headquartered at Luton airport north of London.
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EasyJet operates from 164 airports in 38 countries.
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EasyJet employs 19,000 people.
Castlelake, Investment Firm
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Castlelake stated it intends to support EasyJet's future growth and transformation if the transaction proceeds to completion.
Castlelake, Investment Firm
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Castlelake stated it has emphasized its tremendous respect for EasyJet and its people.
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Castlelake said it is supportive of EasyJet’s plans to buy newer planes to modernise its fleet and cut fuel costs.
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Castlelake indicated it will set up a European holding company controlled by EU nationals to comply with EU restrictions on airlines.
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Peter Bellew was named as a controlling director in previous bids.
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Peter Bellew is a former Malaysia Airlines chief executive.
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Peter Bellew is a former chief operating officer at EasyJet, Riyadh Air, and Ryanair.
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Mark Breen was named as a controlling director in previous bids.
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Mark Breen is the chief executive of Dublin-based Oneiros Aerospace.
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Mark Breen is a former chief operating officer at Oman Air.
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The Canadian-American investor Brookfield Asset Management was part of previous bids.
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The investment bank Evercore advised EasyJet on the negotiations.
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Goldman Sachs advised Castlelake on the negotiations.
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Castlelake has until 5pm on 3 August to make a firm offer or walk away.
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Kenton Jarvis is the chief executive of EasyJet.
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Kenton Jarvis reported falling bookings in March.
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Stephen Hester is the chair of EasyJet.
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Stephen Hester is the former Royal Bank of Scotland chief executive.
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EasyJet is a member of Britain’s FTSE 250 index.
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