French retailer Groupe Casino has announced that its board of directors have decided to continue negotiations with Daniel Kretinsky's investment vehicle EP Global Commerce a.s., as well as Fimalac and Attestor to strengthen the group’s equity capital by the end of July 2023.
The move follows a revised offer from EP Global Commerce a.s., Fimalac and Attestor on 15 July 2023, and 3F Holding's decision not to submit a revised offer, the company said in a statement.
Assessment Of Proposals
The proposals were assessed considering an array of factors, including business continuity and long-term viability of the group; integrity of the French perimeter and the group’s core business; and safeguarding employment within the group and its stakeholders.
Other factors include speed and certainty of execution of the restructuring scheme; and compatibility of the capital structure with cash flow generation for executing the company's business plan and repayment of debts.
The company added that it also factored in the unconditional nature of the new money equity commitments; and the level of liquidity available to the group following completion of the restructuring, which will reflect the financial robustness of the restructuring plan.
Sales Performance
The retailer reported a 6.6% sales decline in France in the second quarter, after a 4.6% drop in the first three months of the year.
Hypermarket sales were down 17.1% in the second quarter on a like-for-like basis, with supermarket sales down 13.9%, the group said, however its Monoprix arm reported a 2.2% increase in sales, and Franprix was up 4.3%.
The company expects full-year core earnings or EBITDA below €300 million, against an estimate of €440 million in a business plan presented last month.
