The shareholders of the Casino distribution group, faced with colossal debt, will be “massively diluted” whatever the restructuring plan adopted and the parent company Rallye “will lose control” of the group, the group announced on Wednesday in a press release.
“Whatever the final restructuring plan, Casino’s shareholders will be massively diluted and Rallye will lose control of Casino”, thus ending the stranglehold of the historic boss of the distributor Jean-Charles Naouri, it is further specified.
6.4 billion in debt
While two expressions of interest have been publicly issued, on the one hand by the Czech billionaire Daniel Kretinsky, already a Casino shareholder, and on the other hand by the trio of businessmen Xavier Niel (Free), Matthieu Pigasse and Moez-Alexandre Zouari, the group hopes to “finalize an agreement in principle on the terms of the financial restructuring by July 27”, he said.
After announcing on Monday that it hoped to convert into capital “at least all the unsecured debt”, i.e. more than 3 billion euros, “Casino today communicated to the parties involved in the conciliation that it considers it necessary to convert in capital (…) between 1 billion and 1.5 billion euros of secured debt”.
This therefore means that the holders of unsecured debt and a part of the holders of secured debt would become shareholders of the distributor, rather than getting their money back. Casino’s net debt amounts to a total of 6.4 billion euros and that of its parent company Rallye to around 3 billion euros.
Kretinsky or a trio?
“As a reminder, the group believes that this agreement should include an equity contribution for an amount of at least 900 million euros in order to allow the implementation of the 2023-2025 business plan under adequate liquidity conditions. “, he says in his press release.
Czech billionaire Daniel Kretinsky, already a 10% Casino shareholder, had offered some of Casino’s creditors to write off part of Casino’s debt in exchange for either cash or shares or both. . And this, up to approximately 40% of receivables.
The businessman has offered to contribute 750 million euros to Casino as part of a capital increase of more than one billion euros, to which billionaire Marc Ladreit de Lacharrière (Fimalac) would also subscribe. , which announced last week that it holds more than 12% of Casino’s capital. The other offer, from the trio of businessmen Xavier Niel (Free), Matthieu Pigasse and Moez-Alexandre Zouari, also plans to offer Casino creditors to “reinvest in capital”.