Czech investor Kretinsky offers to subscribe to Casino capital increase (updated)

Teract SA

24/04/2023 07:35

(Adds detail, combining stories)
    By Dominique Vidalon
       PARIS, April 24 (Reuters) - Czech billionaire Daniel
Kretinsky has proposed a capital increase at Casino  CASP.PA  to
which it would subscribe under a plan that could lead to a
change of control at the debt-laden retailer, Casino said on
Monday.
    Casino, led by Jean-Charles Naouri, has around 3 billion
euros ($3.3 billion) of debt maturing between 2024 and 2025.
    Currently it is in exclusive talks to combine its French
retail business with Teract, a company backed by billionaire
Xavier Niel, as it seeks to reassure investors over its ability
to generate cash and reduce debt.
    Casino said in a separate announcement on Monday that
Groupement Les Mousquetaires, owner of supermarket chain
Intermarche, had joined the exclusive tie-up talks.
    EP Global Commerce a.s, a Czech company controlled by
Kretinsky proposed to subscribe to capital increases at Casino
worth an aggregate 1.1 billion euros ($1.2 billion).
    The company is already Casino's second largest shareholder
with a stake of 10.06%.
    "At this stage, Casino Group has acknowledged the proposal,"
Casino said in a statement.
    "If it were to respond positively to this proposal, the
implementation of the transactions proposed by EP Global
Commerce a.s. could, depending on the financial parameters
ultimately agreed between the parties, lead to a change of
control of Casino and to a dilution which might be very
significant for existing shareholders," it said.
    EP Global Commerce proposed to subscribe to a reserved
capital increase of up to 750 million euros in Casino's share
capital.
    It offered Fimalac, Casino's third largest shareholder, the
opportunity to subscribe to a reserved capital increase of up to
150 million euros.
    A capital increase of up to 200 million euros with
preferential subscription rights would also be offered to
Casino’s other existing shareholders.
        ($1 = 0.9104 euros)

 (Reporting by Sudip Kar-Gupta; editing by Dominique Vidalon and
Jason Neely)
 ((sudip.kargupta@thomsonreuters.com;))