(News Bulletin 247) – The three businessmen have made a proposal to the distribution group with the aim of strengthening the capital of the Saint-Etienne company for an amount of up to 1.1 billion euros, i.e. the same amount proposed by Daniel Kretinsky.

The Casino series continues with a new adventure. The trio made up of Iliad founder Xavier Niel, investment banker Matthieu Pigasse and entrepreneur specializing in distribution Moez-Alexandre Zouari, sent a preliminary letter of intent to the company in great difficulty, with a debt over 5 billion euros at the end of March.

This trio had already expressed its desire to make an offer to restore the distribution group after Teract and Casino finally decided not to get closer. According to a press release from Casino, the three businessmen propose to strengthen the equity of the distribution group up to a maximum of 1.1 billion euros, of which 200 to 300 million euros will be directly invested by them. same.

Elements which thus confirm the information which had been reported last week by BFM Business.

In addition to their own contributions, the three acolytes would associate “partners” with this project, including Casino creditors who would like to reinvest in capital, in order to raise the approximately 1.1 billion euros.

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Debt reduction in question

“This proposal would be accompanied, to the extent necessary, by an adaptation of Casino’s existing debt to its capacities and the preservation of its growth potential. At this stage, this is not a firm offer. but of a preliminary expression of interest which may not succeed”, specifies the company in a press release. “The group will study this expression of interest and will keep the market informed in the event of a new material element”, adds Casino.

The offer of the trio thus puts itself at the level of the proposal of the Czech businessman, Daniel Kretinsky. The latter presented as a project a bailout of 1.1 billion euros in capital, of which 750 million euros would be directly provided by his holding company, Vesa Equity Investments, which already owns just over 10% of Casino.

This project poses as a prerequisite a reduction of the unsecured gross debt on the part of Casino. According to Bloomberg, the Czech businessman could offer creditors to buy back the debt they carry at a steep discount but with a price still higher than that of the secondary market. AFP, on the other hand, mentions a 60% discount to the value of the debt, with reimbursement either in cash or in shares.

Small carriers who ignore dilution?

On the Paris Stock Exchange, Casino shares soared, taking 20% ​​around 10:30 am after this information. “It is likely that this increase is due to small individual holders who are positioning themselves on the title, in view of the news and now that there are two offers on the table”, considers Clément Genelot, analyst at Bryan Garnier & Co.

“But these small holders probably do not have in mind the dilution to come on the action, with both capital injections but also debt which will probably be converted into shares,” he adds.

The sheer amounts of the capital injections of the two projects, of 1.1 billion euros, alone represent significantly more than the market capitalization of Casino, which currently stands at 830 million euros.

This is reminiscent of the Orpea file, in which analysts estimated that small holders were able to position themselves at the beginning of the year on the action while ignoring the mega-dilution (99.6% minimum) linked to the recapitalization projected by the group of retirement homes.

A very political file

It remains to be seen which of the two proposals will convince the group but also its creditors. Remember that Casino has been in the conciliation process since the end of May with a view to renegotiating its debt with its creditors. Two conciliators were appointed, master Aurélia Perdereau and master Marc Sénéchal. This conciliation will last four months and may be extended for an additional month.

“It is hard to say which of the two can hold the rope and we cannot exclude that there is, in the end, a mix of the two offers”, underlines Clément Genelot. “The choice will depend on the judges, the creditors and perhaps the government,” he adds.

Because the Casino subject also has a significant political dimension. This is becoming “hyper political”, a source familiar with the matter told BFM Business, for whom the government is worried, even, given the magnitude of the subject, the 50,000 employees in France that the group has and the impact to be expected. into regions for an entire ecosystem.

For his part, Bercy does not panic and says he is “attentive” to the situation, without commenting further, at this stage. Bercy is betting on an industrial solution that would avoid social damage. But “things can go very quickly”, according to a Casino competitor while another even believes that we are “already in the dismantling”.

Several media have reported in recent days that Auchan and even Carrefour are following the case.

By Julien Marion with Pauline Tattevin