DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Retail

Trio Of French Businessmen Plan Counter-Offer For Casino

By Reuters
Share this article
Trio Of French Businessmen Plan Counter-Offer For Casino

trio of French businessmen readied on Thursday to make a new offer for supermarket chain Casino after exclusive tie-up talks between Casino and smaller retail rival Teract collapsed.

In a joint statement, telecoms billionaire Xavier Niel, investment banker Matthieu Pigasse and entrepreneur Moez-Alexandre Zouari said they were prepared to invest their funds in Casino to find a lasting solution to the group's financial woes.

This new money would come in the form of a dedicated vehicle, dubbed '3F' (founders, friends and family), that would be invested in a potential share sale of Casino, a source close to the matter said.

Starting with €300 million, 3F will seek to raise money from Casino's creditors to bring the sum to a little over €1 billion, the source added.

Debt Repayments

Casino had a consolidated net debt of €6.4 billion at the end of last year. It faces €3 billion worth of debt repayments in the next two years and the holding company through which veteran entrepreneur Jean-Charles Naouri controls the company is also heavily indebted.

ADVERTISEMENT

Amid mounting concerns about its ability to pay back its debts, Casino had been weighing a tie-up proposal from Teract and a rival one from Czech billionaire Daniel Kretinsky.

But Teract and Casino said on Thursday they had decided by mutual agreement to end exclusive talks started since March to combine the two group's retail activities in France.

Read More: 5 Takeaways From Groupe Casino's Full-Year Results

Last month Casino, which owns the Franprix and Monoprix chains, officially started court-backed negotiations with its creditors.

ADVERTISEMENT

In April, Kretínsky, already Casino's second-largest shareholder, offered to take control of Casino through a €1.1 billion ($1.18 billion) capital increase.

Kretinsky's proposal is backed by investor Marc Ladreit de Lacharrière, whose Fimalac group is now Casino’s third-largest shareholder.

Casino said on Thursday the end of the discussions with Teract had no impact on a protocol of intent Casino announced last month with French rival Groupement Les Mousquetaires and which entails the sale to Les Mousquetaires of Casino stores in France, representing around €1.05 billion in sales.

News by Reuters, edited by ESM – your source for the latest retail news. Click subscribe to sign up to ESM: European Supermarket Magazine.

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.