France's Casino receives two bids to boost its equity capital (updated)

Eandp Global Holdings

04/07/2023 08:07

(Adds details paragraphs 2 and 3, 3F statement in paragraph 5,
updates shares)
       PARIS, July 4 (Reuters) - Cash-strapped French
supermarket group Casino  CASP.PA  said on Tuesday it had
received two offers to boost its equity base and will make the
main terms of each proposals public at the end of a meeting with
creditors after the close of business on July 5.
    The offers come as Casino and the holders of its 6.4 billion
euros ($6.96 billion) of debt have began talks in June as the
group races to stay afloat by converting a large part of its
debt into equity, as well as through divestments and an
agreement to defer taxes and social charges with the government.
    A debt restructuring has become unavoidable as the
sixth-largest French retailer, home to the Monoprix and Franprix
chains, continues to burn cash and faces 3 billion euros of debt
maturing in 2024 and 2025.
         One offer is from EP Global Commerce, the investment
vehicle of Czech billionaire Daniel Kretinsky and by holding
company Fimalac, and the other is from 3F holding, led by
investment banker Matthieu Pigasse, technology tycoon Xavier
Niel and businessman Moez-Alexandre Zouari, the statement said. 
    In a separate statement 3F said that, together with its
financial partners, it would invest 900 million euros in the
group.
        Casino said it would present the proposals to the board
of directors later, and then to the creditors' meeting on July
5.
  
        "Casino’s governance bodies will not take any decision
relating to such proposals until they have been presented and
discussed with the creditors under the aegis of the
conciliators," it added.
  
    Shares in Casino plunged as much as 20% on Monday to a
record low after it said it will now ask the commercial court
for a grace period to avoid a default, after some creditors
refused requests not to charge interests and other fees during
the conciliation period. 
    The shares closed down 3.3% at 3.93 euros, giving it a 
market capitalisation of 440 million euros.
     In late June Casino had said it aimed to conclude a debt
restructuring agreement with its creditors by the end of July,
telling them it needed an equity contribution of "at least 900
million euros".

 (Reporting by Dominique Vidalon, Editing by Louise Heavens)
 ((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters
Messaging: dominique.vidalon.reuters.com@reuters.net))