The board of supermarket chain Groupe Casino has decided to continue talks with a Czech billionaire Daniel Kretinsky-led consortium to strengthen the company’s equity capital.
Kretinsky submitted a revised offer over the weekend in response to a request made by the conciliators to submit revised offers to rescue the company.
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The Kretinsky-led consortium comprising EP Global Commerce, Fimalac and Attestor, as well as billionaire Marc Ladreit de Lacharriere, plans to inject €1.2bn ($1.35bn) of new money in the form of equity.
Of the total, around €925m is reserved to EPGC/Fimalac/Attestor and the remaining €275m to creditors and existing shareholders by order of seniority.
The consortium’s rival bidding group, 3F Holding, formed by Xavier Niel, Matthieu Pigasse and businessman Moez-Alexandre Zouari, decided not to submit a revised offer.
The cash injection plan, if materialised, would reportedly reduce the company’s overall debt by €4.7bn.
In a presentation released by Casino, the Kretinsky-led consortium would hold a combined 53% stake in Casino.
Groupe Casino started court-backed negotiations with its creditors in May this year to conduct the discussions within a legal framework.
Late last month, Casino revealed that it needs at least €900m of equity contribution to carry out its restructuring plan.
The retailer also decided to divest its residual equity stake in Brazilian retailer Assai to strengthen its liquidity.
