By A major restructuring plan is set to give control of French supermarket owner, Casino Guichard-Perrachon, to Czech billionaire Daniel Kretinsky and his consortium. Upon completion of the restructuring, the consortium will hold a significant 53.7% stake in the company.
Existing shareholders of Casino will experience substantial dilution, with their ownership shrinking to approximately 0.3% once the restructuring process concludes. This comes as part of the company’s efforts to strengthen its capital base and reduce its debt, which amounts to a staggering 6.1 billion euros ($6.66 billion).
The consortium’s proposal entails injecting 1.20 billion euros in new equity into Casino, with 275 million euros specifically reserved for creditors and current shareholders. Additionally, the restructuring plan involves converting debt into equity.
Casino has been grappling with mounting debt and declining market share in its home country for several months now. In an attempt to alleviate these challenges, the group entered into exclusive negotiations last December to sell nearly all of its hypermarkets and supermarkets, excluding real estate, to Groupement Les Mousquetaires and Auchan Retail for a sum of 1.35 billion euros.
This restructuring effort signifies a substantial turning point for Casino Guichard-Perrachon, as it seeks to navigate through its financial struggles and regain stability in the market.
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