British budget airline easyJet has agreed in principle to a revised takeover offer from US investment firm Castlelake, valuing the carrier at up to £5.5 billion ($7.34 billion).

The bid of £6.90 per share represents a 73% premium to easyJet’s closing price on May 29, when interest in the airline was first disclosed, triggering a sharp rise in its shares.

easyJet’s board said the updated proposal is at a level it would be “minded to recommend” to shareholders, but noted Castlelake must submit a firm intention to proceed by August 3.

easyJet operates low-cost services across 38 European countries, with a fleet of 355 aircraft serving more than 1,200 routes.

The potential deal marks a significant development in European aviation consolidation and could reshape ownership of one of the region’s largest budget carriers if completed. -TradeArabia News Service