2023-06-30 08:30:38
A precarious financial situation drags Casino into turmoil
After floating on a sea of financial uncertainties, Casino suddenly collapsed on the stock market. There decision to carry out a transformation of colossal debts into capital, ranging between 4.6 and 5.1 billion euros, is announced cas a devastating wave for shareholders. So, with a declining market capitalization and net debt hovering above the €5 billion mark, Casino’s financial future looks bleaker than ever.
The distributor, currently in conciliation with its creditors, announces with fanfare a “massive dilution” pending for its investors. As a result, the action of the distribution giant fell freely, losing 28% of its value. A painful image that illustrates the current evils of Casino.
Complex and uncertain survival strategies
In a desperate attempt to save itself from the financial abyss, Casino plans to convert all of its unsecured debt, which is estimated to be around 3.6 billion euros, into capital. But also, part of its secured debt, that is to say a debt guaranteed by an asset. Thus, the latter represents between 1 billion and 1.5 billion euros. The purpose of these measures? Present a debt structure compatible with cash generation.
These financial maneuvers are intended bring profitability back to the company by 2025. A complex situation will soon be at the heart of discussions with potential equity providers. But also, with the financial creditors of the group. In addition, Casino is also seeking an equity contribution of at least 900 million euros. Two proposals emerged. On the one hand, one of the Czech businessman Daniel Kretinsky, and the other of the trio Xavier Niel – Matthieu Pigasse – Moez-Alexandre Zouari. But for the moment, no official announcement has been communicated.
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