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Retail

Shares In Groupe Casino Suspended As New Leadership Team Takes The Helm

By Reuters
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Shares In Groupe Casino Suspended As New Leadership Team Takes The Helm

Shares in Casino will be suspended on Wednesday (27  March) as a new leadership team formed around Czech billionaire Daniel Kretinsky takes control and its board meets to review the completion of the new company structure.

Casino has requested that its shares be suspended from 08:00 GMT until further notice and pending the release of a statement, stock market operator Euronext said.

France's seventh-largest supermarket group by market share was brought to the verge of default last year after years of debt-fuelled acquisitions and losses in market share to rivals.

The restructuring of Casino by a consortium led by Kretinsky massively dilutes current shareholders, most notably 75-year old Jean-Charles Naouri, who has led Casino for 30 years controlling it through his holding company Rallye.

According to a 12 March prospectus, Kretinsky's consortium is expected to own 52.1% of Casino under a bailout deal that entailed a €1.2 billion capital injection and a €6.1 billion reduction of Casino's debt.

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Management Change

Naouri is due to resign on Wednesday as are all other members of the Casino board with the exception of independent member Nathalie Andrieux.

Former French secretary of state for pensions and Auchan executive Laurent Pietraszewski will become chairman while former Metro and Lactalis executive Philippe Palazzi will become Casino's chief executive.

Casino stock closed at €0.1069 on Tuesday, having lost 86% so far this year.

In February, the retail group reported net sales of €9.0 billion in its 2023 financial year – a 3.7% decline on the previous year – according to updated results that exclude both non-current assets held for sale and discontinued operations.

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