PARIS (Reuters) – EP Global Commerce, owned by Czech businessman Daniel Křetínský, has offered Casino the implementation of a capital increase of 1.1 billion euros which could lead to a takeover of the group, the distributor announced on Monday.

Casino says it has received from EP Global Commerce – a company affiliated with VESA Equity Investment which holds 10.06% of the capital of the Saint-Etienne group – a letter of intent to subscribe to a capital increase reserved for Casino up to 750 millions of euros.

EP Global Commerce proposes that Fimalac, which is also a Casino shareholder, can subscribe to a capital increase reserved for it, up to 150 million euros.

A capital increase with maintenance of preferential subscription rights would be offered to existing Casino shareholders, up to 200 million euros, the group still indicates.

“At this stage, the group has only taken note of the proposal,” Casino said in a statement.

“If it were to give a favorable follow-up, the implementation of the operations proposed by EP Global Commerce could, depending on the financial parameters adopted by the parties, lead to a change of control of Casino and to a very significant dilution of the shareholders. existing”.

This operation is subject to several conditions precedent, indicates Casino, in particular a “very substantial” reduction of the group’s unsecured gross debt by way of redemption in cash and conversion into capital and obtaining a waiver from the part of the group. of the AMF to the obligation to file a public offer on the shares of the company.

This derogation, provided for in the regulations of the stock market policeman, makes it possible to take control of a company in a proven situation of financial difficulty within the framework of a subscription to a capital increase subject to the approval of its shareholders.

The operation must also obtain the agreement of certain creditors of Casino, heavily indebted. Ratings agency Moody’s last month downgraded the retailer’s credit rating, citing market share losses, low liquidity and high leverage.

Casino says it will analyze EP Global Commerce’s proposal over the next few weeks.

At the same time, the group is continuing its discussions with Teract, with which it began a merger process in distribution in France in early March.

Casino also announced on Monday, in a separate press release, that it had entered into exclusive discussions with the Groupement Les Mousquetaires to deepen their industrial and purchasing partnerships.

“The Groupement Les Mousquetaires and the Casino group plan to extend the duration of their alliances by two years until 2028 and to extend their agreements to the new entity to be formed between the Casino group and Teract, which would be controlled by the Casino group” , he said in a statement.

(Written by Blandine Hénault, edited by Nicolas Delame)

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