EasyJet has agreed in principle to be acquired by U.S. private equity firm Castlelake in a deal valuing the airline at about £5 billion ($6.7 billion).

The offer of £6.90 per share still requires a formal bid by August 3 or it could be withdrawn.

EasyJet’s board said it is “minded to recommend” the deal to shareholders after previously rejecting multiple earlier offers.

Castlelake said it plans to support EasyJet’s growth, fleet modernization, and long-term competitiveness, CBS News has reported.

The airline has recently faced profit pressure from rising fuel costs, while its shares rose sharply after the announcement.