2023-07-02 16:57:37
Suitors to bail out or take over Casino have until Monday evening to submit their fresh money offers, and the future of the heavily indebted French retailer might be decided by the end of July.
Recapitalization, fear of a cut… The fate of the Saint-Etienne group and its Monoprix, Franprix or Cdiscount brands will not be sealed for several weeks, the time to examine the financial arguments presented.
Casino, which employs more than 200,000 people worldwide, including a large quarter in France, posted a net debt of some 6.4 billion euros at the end of 2022 (including 4.5 billion on the French activity) and urgently needs new money.
The group increased its turnover to 33.6 billion euros in 2022 thanks to inflation, but posted a net loss of 316 million and lost a lot of market share.
Whatever score is played, a change of era is looming: Rallye, the parent company in debt of some 3 billion euros, “will lose control of Casino”, indicated the distributor on Wednesday, thus ending the stranglehold of the historical boss Jean-Charles Naouri.
Casino attracts suitors, despite the financial and performance abyss. But not all of them necessarily have the same ambitions, some being potentially interested in the location of stores, less in the future of the brand born 125 years ago.
Several billionaires have shown interest publicly.
The Czech Daniel Kretinsky, already a Casino shareholder with more than 10% and who wishes to take control, is ready to inject 750 million euros. Provided that the debt is reduced, with a capital increase of more than one billion euros to which would subscribe up to 150 million euros Marc Ladreit de Lacharrière (Fimalac), also a shareholder (12% of the capital) and close to CEO Naouri.
For their part, the trio of businessmen Xavier Niel (Free), Matthieu Pigasse and Moez-Alexandre Zouari said they were potentially ready to invest up to 300 million euros as part of “strengthening equity (together with other players) of up to €1.1 billion”.
In the retail sector, Intermarché might also help recapitalize its competitor, while at least one other player would be eyeing the case.
The unions, which have launched an economic alert right procedure to find out more regarding the situation of the group, are particularly concerned regarding a sale by cutting and a transfer of additional stores to Intermarché (119 are already planned ), a group of independents where social policy depends on each store owner.
– Objective: end of July –
At the end of May, Casino entered into a procedure to renegotiate its debt under the aegis of the Paris Commercial Court. He has four months to conclude but hopes “to finalize an agreement in principle on the terms of the financial restructuring by July 27”, he said on Wednesday.
He wants a massive conversion of his debt into capital, covering more than 3 billion euros of unsecured debt and between 1 billion and 1.5 billion euros of secured debt. The holders of these claims (large banks, funds, institutions, etc.) would thus become Casino shareholders rather than recover their money.
The group also wants to be able to at least preserve the activity in France.
He hopes for a capital increase “of at least 900 million euros”, to have the “adequate liquidity” to carry out his strategic plan 2023-25.
After abortive negotiations with Teract, a young entity founded by the Niel-Pigasse-Zouari trio in the bosom of the agribusiness juggernaut InVivo, Casino has changed its tune: it has just announced a merger with Prosol (fruit, vegetable, fishmonger’s and creamery division of the Grand Frais brand), from which he wants to import the successful concept in terms of fresh products. A partnership supposed to be implemented “no later than July 24, 2023”, once “agreements in principle” have been concluded.
On the Paris Stock Exchange, the Casino share, which was around 80 euros in the mid-2010s, reached its historic low in session last Thursday, at around 5 euros.
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