Retailer Casino's parent Rallye gets offer for 'Courir' sports arm (updated)

Finatis SA

22/10/2018 07:12

* Rallye is parent company of retailer Casino
    * Equistone makes offer for Rallye's 'Courir' sports arm
    * Offer represents equity value of 283 mln euros

 (Adds detail and background)
    By Sudip Kar-Gupta
    PARIS, Oct 22 (Reuters) - Rallye  GENC.PA , the holding
company that controls French supermarket retailer Casino
 CASP.PA , has received an offer for its 'Courir' sports brand,
with both companies keen to sell assets and cut debts that have
concerned some investors.
    Private equity firm Equistone Partners Europe had made a
binding offer for Courir for an equity value of 283 million
euros ($326 million), and the deal could be completed in the
first half of 2019, Rallye said on Monday.
    The sale of Courir marks the latest planned asset disposal
by Casino and Rallye to ease concerns over their financial
position, with Casino shares having fallen some 20 percent so
far in 2018 on concerns over debts at both companies.
    Worries over those debts have led to hedge funds targeting
Casino by betting on its shares falling further in future.
    Earlier this month, Casino agreed to sell some properties of
its Monoprix chain for 565 million euros, while in September
five banks granted Rallye a new 500 million euro credit line.
    Within the Casino group, dividends from Casino are used to
maintain Rallye's debt interest payments. The shares of Casino
that are held by Rallye are also pledged as collateral to banks
in order for Rallye to obtain more financing.
    Last week, Casino reported that sales growth had accelerated
in the third quarter, and it also kept its annual financial
targets.  urn:newsml:reuters.com:*:nL8N1WY6EY 
    ($1 = 0.8687 euros)

 (Reporting by Sudip Kar-Gupta, Editing by Sherry Jacob-Phillips
and Emelia Sithole-Matarise)
 ((sudip.kargupta@thomsonreuters.com; +33 1 49 49 53 84;))