2023-10-16 06:48:00
Bertrand Meunier is getting off the Atos train, but the group’s split continues without the chairman of the board of directors, replaced by Jean-Pierre Mustier, independent director of the board of directors since May 2023. The press release from the digital services group is clear , very clear :
“Taking into account the differences in business dynamics, growth and cash generation profiles and capital requirements of the Tech Foundations and Eviden scopes, as well as potential dissynergies, mitigation measures and separation costs estimated, the Board of Directors decided that the separation was the best solution in the interest of all Atos stakeholders and would unlock the full intrinsic value of Eviden, which operates in market segments displaying higher valuation multiples than those relating to the Tech Foundations activity”.
As a result, Atos is currently making something new with something old. Thus, the exclusive negotiations underway with the company EP Equity Investment (EPEI), a holding company of Czech billionaire Daniel Kretinsky, are continuing with the sale of the historic outsourcing activities, dedicated to the maintenance of IT assets. However, this operation exacerbated very strong opposition. As such, two minority shareholders, the Alix AM and CIAM funds, even filed a complaint before the National Financial Prosecutor’s Office (PNF), the first for active and passive corruption and the second for “false or misleading information”.
“Following the announcement by Atos on August 1, 2023 of the entry into exclusive negotiations for the planned sale of Tech Foundations to the EPEI group, the company can now confirm that the preparatory stages of the project are underway,” explained Atos in its press release.
Plan B
Atos management promises that shareholders will receive ” all the necessary information “ on the final operation, the remaining scope (Eviden) and financing, for approval at the general meeting. This is particularly the case for the final terms of the operation and the capital increases aimed at strengthening Eviden’s capital structure, which are “inter-conditioned with the planned sale of Tech Foundations”.
In this context, EPEI has an investment agreement. This reserves up to 7.5% of Eviden’s capital for him in an operation valued at 900 million euros, including 180 million reserved for Daniel Kretinsky. But, Atos warns, “these negotiations might lead to the modification of certain financial parameters of the planned transaction”. The project advances. The group filed “most pre-notifications or notifications under regulatory authorizations to the various jurisdictions concerned”.
“The conclusion of definitive and binding agreements is planned as soon as the exclusive negotiations are completed, and if the latter are successful, by the end of 2023 at the latest, subject to the completion of the consultation process of staff representative bodies and obtaining the required banking consents (waivers), specified the group. In addition, “the completion of the overall operation is now anticipated for the start of the second quarter of 2024”.
Will this be enough to put out the fire? Not sure. Everything will also depend on whether the Alix AM and CIAM funds have a strategic agenda or only the desire to play the role of active shareholders. Thus, Atos management is preparing for a plan B in case the operation with EPEI fails. If this were the case, the digital services group would then consider “to access capital markets (debt and equity) and/or the sale of additional assets, in order to ensure adequate liquidity to meet debt maturities in 2025”. Atos must refinance a term loan of 1.5 billion euros maturing in January 2025 and bonds of 750 million euros maturing in May 2025. In the end, Atos management wants whatever arrives to advance this separation plan. She remained fully committed to it.
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