EasyJet shares surged in early dealmaking Monday after it agreed in principle to takeover bid from Castlelake.

The offer of £6.90 per share for Easyjet remains short of the £7 per share offer that some shareholders had been holding out for.

Agreement in principle with Castlelake follows several rejected offers and means UK’s biggest low-cost carrier will be taken private

The agreement marks huge progress for the companies after months of fraught negotiations

Castlelake’s £6.90-a-share bid values EasyJet at more than £5 billion.