Casino Board Approves Negotiations for Czech Billionaire to Take Control – 07/17/2023 – Market

Casino’s board approved this Monday (17) that the French group advances in negotiations with Czech billionaire Daniel Kretinsky regarding a plan to inject 1.2 billion euros (R$ 6.5 billion) into the retailer.

In Brazil, Casino is the largest shareholder of GPA, owner of Pão de Açúcar.

Kretinsky’s attempt to gain control of Casino appears to be getting closer to success, as 3F Holding, led by telecommunications entrepreneur Xavier Niel, pulled out of the deal.

The Kretinsky deal would end the 30-year reign of Casino chief executive and controlling shareholder Jean-Charles Naouri, as the sector in France is adapting to the rise of e-commerce and aggressively discounted supermarket chains. .

Kretinsky has disputed control of the Casino with 3F Holding, formed by Niel, banker Matthieu Pigasse and businessman Moez-Alexandre Zouari.

However, 3F announced late Sunday that it was withdrawing its offer, citing a “biased process” and a lack of information. The move also came after one of its backers — asset manager Attestor Capital — switched sides to support Kretinsky’s bid.

The move left Kretinsky, who submitted a revised bid over the weekend, as the sole bidder.

In a presentation released on Monday night, after a meeting of its Board of Directors, Casino said that most of the capital injection, or around 925 million euros, would be made by a consortium formed by Kretinsky, the billionaire Frenchman Marc Ladreit de Lacharrière and Attestor.

The remaining 275 million euros would come from creditors and current shareholders, according to the presentation. The cash injection plan would lead to a reduction of 4.7 billion euros in the group’s overall debt, Casino said.

The French group is experiencing financial difficulties, with a net debt of 6.4 billion euros.

Casino shares were suspended on Monday and are expected to resume on Tuesday in Paris.

Kretinsky’s offer would give the consortium a combined 53% stake in Casino, the company said in the filing.

Collaborated by André Romani