France's Groupe Casino has announced that it has received a preliminary letter of intent from investors Xavier Niel, Matthieu Pigasse, and Moez-Alexandre Zouari, outlining a proposal to strengthen the equity of Casino Guichard Perrachon by up to €1.1 billion.
Under this proposal, Niel, Pigasse, and Zouari would invest €200 to €300 million directly, with the remaining amount to be subscribed by partners who would be associated with their project.
These partners may include current creditors who are interested in reinvesting in the capital of the company, Casino said.
In the event that the proposal progresses, it would be accompanied by an adaptation of Casino's existing debt to align with the company's capabilities and 'ensure the preservation of its growth potential', it noted.
Read More: Casino Bankruptcy Event 'Has Not Occurred', Says CDS Committee
'Expression Of Interest'
In a statement, Groupe Casino said, 'At this stage, this is not a firm offer but a preliminary expression of interest which may not be successful.
'The group will study this expression of interest and keep the market informed in the event of any new material elements.'
Casino issued the statement following the news breaking in French media earlier this week that the trio were planning an investment in the indebted retailer.
Casino's debt amounted to €6.4 billion at the end of December. The retailer is obligated to repay €3 billion of debt in the next two years.
Read More: Groupe Casino Unveils Details Of Stores To Be Sold To Intermarché
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