2023-06-26 11:38:14
By Le Figaro with AFP
Posted 2 hours ago, Just Updated
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The distributor wants to convert “at least all unsecured debt” into capital, ie more than 3 billion euros.
Sale of Grupo Pao de Acucar and Grupo Exito, halving of debt, capital increase of at least 900 million euros… The Casino group, which entered a conciliation procedure at the end of May, detailed on Monday the measures deemed necessary to ensure its economic sustainability. The Saint-Etienne distributor publicly detailed on Monday the measures it intends to implement in order to “strengthen its liquidity» and ensure «a sustainable capital structure“, after having presented them to its creditors on June 15.
It therefore plans to sell its South American brands, the Brazilian Grupo Pao de Acucar (GPA) and the Colombian Exito, even if it did not give a precise timetable in its documentation, nor during a telephone press briefing. . At the end of 2022, the group had nearly 1,000 stores in Brazil and more than 2,100 in Colombia, the two countries where it has the strongest presence outside of France. Its presence is much lower in Argentina (33 stores) and Uruguay (96 stores). Three-quarters of the group’s workforce, which employed precisely 208,254 people as of December 31, 2022, work in Latin America.
Strong debt reduction expected
Casino also hopes to reduce its debt (6.4 billion euros of net debt) by half as part of the conciliation procedure opened at the end of May. Concretely, he hopes to convert into capital “at least all unsecured debts», that is more than 3 billion euros. This means that the creditors who lent him this money, instead of recovering it, would reimburse themselves by becoming shareholders of the group. Czech billionaire Daniel Kretinsky, already a 10% Casino shareholder, had offered some of Casino’s creditors to write off part of Casino’s debt in exchange for either cash or shares or both. . And this, up to about 40% of receivables.
The businessman has offered to contribute 750 million euros to Casino as part of a capital increase of more than one billion euros, to which billionaire Marc Ladreit de Lacharrière (Fimalac) would also subscribe. , which announced last week that it holds more than 12% of Casino’s capital. The other offer, from the trio of businessmen Xavier Niel (Free), Matthieu Pigasse and Moez-Alexandre Zouari, also plans to offer Casino’s creditors to “reinvest capital“. The group from Saint-Etienne, which employs around 50,000 people in France, said it wanted to raise “at least 900 million euros», pour «provide the company with the necessary funds to implement its strategy» 2023-2025.
“Preserving (the) liquidity”
Closer to home, Casino had announced the previous week several measures to “preserve its liquidity” during the conciliation procedure, which can last until October 25. His social and tax charges covering May to September have been postponed, and his creditors have been asked not to demand the payment of sums due, interest or reimbursements, while the conciliation takes place. Casino also sold its stake in the Brazilian cash&carry brand (wholesale sales for professionals and individuals) Assai. At the end, the group will have “no liquidity problem by the end of the conciliation period“, Estimated an independent financial firm. There will be none by the end of 2023, the firm estimates, provided that the freezing of financial charges and debt maturities continues.after the end of the conciliation period“. Forecasts depending on commercial activityand maintaining supplier deadlines“says Casino.
The situation of the group worries the representatives of the employees. A rally was held Thursday in Saint-Etienne at the initiative of the CGT, Unsa and the CFDT, on the sidelines of a CSE on the sale to Intermarché of 119 stores in France, in which more than 4,000 people work. The unions present said they feareda possible next sale by the Casino group (which) will have the sole objective of enriching the richest“. Monday’s announcements were followed by a drop in the stock market prices of Casino (-6.13% to 7.36 euros around 9:40 a.m.) and its parent company Rallye (-7.60% to 1.65 euro), in a market down 0.68%.
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