French retailer Casino has said that it is exploring fundraising plans for its Cdiscount and GreenYellow subsidiaries.
The company said it had launched preparatory works on potential capital hikes for the units to step up their growth plans.
'Those operations, which could be done through market operations, could also include a secondary placement of shares held by the group,' Casino said in a statement late on Monday, adding it noted a favourable environment on the equity market.
Casino, which recently announced the success of its debt refinancing transaction, said it would keep control of Cdiscount and GreenYellow.
In its statement, the retailer added that its board 'noted the excellent operational performances of both companies, their recognised strong growth potential in their respective markets and the current favourable environment on the equity market. It also confirmed the strategic role of both subsidiaries in the Group’s profitable growth plan.'
Private equity firm Tikehau and French state bank Bpifrance own 24% stakes in GreenYellow.
Elsewhere, Brazilian food retailer GPA said that its share price rose on the back of the news. Shares of GPA, which owns about 34% of Casino Group's Cnova unit that controls Cdiscount, rose 9.8%.
'The group will keep the market informed of the evolution of those projects which will be conducted in consultation with the other shareholders of both subsidiaries', Casino added.
Last month, Rallye - the indebted parent company of Casino - said it had entered into exclusive talks to sell sports equipment unit Go Sport to French property group Financiere Immobiliere Bordelaise (FIB).