(News Bulletin 247) – The distribution group announced Thursday that it was going to sell the balance of its stake in the Brazilian distribution group Assai. The day before, the company had announced various measures to protect its cash.

While the future of Casino now largely depends on judges and its creditors, the group is stepping up measures to preserve its cash flow as much as possible and/or free up cash.

The distribution group thus announced on Thursday that it had initiated the process to sell the balance of its stake in the Brazilian Assai, ie 157.58 million shares representing 11.7% of the capital.

“This transfer will be carried out by the constitution of an accelerated order book executed by the São Paulo Stock Exchange, in accordance with the rules in force on this market place. Casino will communicate on the result of this placement”, indicated the company.

At the current price “this represents around 400 million euros”, underlines a Parisian analyst who nevertheless recalls that these sales of blocks of shares are generally made at the price of an often significant discount.

The requested state

This sale comes the day after announcements of measures taken to protect the group’s cash flow.

Casino has thus indicated that it has requested and obtained a deferral of tax and social charges in the amount of 300 million euros which will be paid once the financial restructuring has been completed.

The conciliators – Casino has indeed been in the conciliation procedure since the end of May – will also request in the coming days from all the financial creditors of Casino and its subsidiaries “the suspension, for the duration of the conciliation (i.e. until October 25, 2023 at the latest), the payment of interest (and other commissions) due by the companies in conciliation (i.e. approximately 130 million euros), as well as the principal installments which are due during the of this period by the companies in conciliation (i.e. approximately 70 million euros)”, explained the company.

Casino expects to reach an agreement in principle with its creditors on the restructuring of its debt by the end of July.

Remember that the group is the subject of two proposals of around 1.1 billion euros, one from businessman Daniel Kretinsky and the other from the trio of entrepreneurs Niel-Pigasse – Zouari.

On the Paris Stock Exchange, Casino shares lost 4.3% shortly before 10 a.m. “The measures (deferrals of tax and social charges and payments to creditors) do not send a good signal and show that Casino is probably burning a lot of cash, to the point of needing to ask the State for a helping hand” , indicates the Parisian analyst, previously quoted.