Green light from Europe. Brussels authorized “under merger control, the takeover of the group as part of the financial restructuring by the consortium” made up of Daniel Kretinsky, the Frenchman Marc Ladreit de Lacharrière and the British fund Attestor, indicates Casino in a press release Monday.
The group, strangled by a colossal debt, specifies that its financial restructuring remains subject to various validations. Among them, the granting by the Financial Markets Authority (AMF) of an exemption from the obligation for the consortium to file a proposed public offer for Casino shares.
The financial restructuring of the group by foreign capital must also be authorized by the Ministry of the Economy. The European Commission must still give its approval on questions of foreign subsidies. Casino signed an agreement in July providing for the restructuring of its debt and a change in shareholding by March-April 2024.
Backup plan
The judicial administrators at the head of the group have summoned shareholders and creditors “to decide” by January 11 “on the projects for an accelerated safeguard plan”. They must in particular vote on the proposed capital increase by the takeover candidates, which will significantly dilute current shareholders. The plan also provides for a significant reduction in debt, around 5 billion euros, harming the group’s creditors.
The outcome of the vote is normally not in doubt, the major creditors having already given their agreement to this plan supervised by the French authorities. And the fact that the group entered the so-called accelerated safeguard period at the end of October allows recalcitrant creditors to be on board.
At the same time, the Saint-Etienne distributor entered into “exclusive negotiations” with Intermarché and Auchan in December to sell “almost all” of its large store base.