(News Bulletin 247) – The distribution group has unveiled the content of the two capital contribution proposals from the Kretinsky-Ladreit de Lacharrière duo on the one hand and the Niel-Pigasse-Zouari trio on the other. In the first case the existing shareholders will only hold 0.2% of the capital and in the second case 0.03%.

Casino had warned: regardless of the financial restructuring project that will ultimately be chosen, its shareholders will suffer massive dilution and its reference shareholder Rallye, one of Jean-Charles Naouri’s holding companies, will lose control.

The extent, however, was not known. The detail of the capital contribution offers communicated late Tuesday evening by Casino allows to have an idea, even if the cursor can still change until the restructuring plan is finalized.

As a reminder, the distribution group, suffocated by a debt of more than 7 billion euros as of June 28, intends to convert between 4.5 billion and 5.1 billion euros of debt into capital and is also looking for at least 900 million euros of additional equity.

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different projects

To obtain this latest injection of capital, the company received two capital contribution proposals. The first comes from the duo formed by the Czech businessman Daniel Kretinsky supported by the financier Marc Ladreit de Lacharrière, the second from the trio formed by the founder of Iliad Xavier Niel, the investment banker Matthieu Pigasse and the entrepreneur Moez-Alexandre Zouari.

That of Daniel Kretinsky proposes a 100% equity contribution of 1.35 billion euros, in the form of a capital increase with maintenance of preferential subscription rights, in which the holding company of the Czech businessman and Fimalac, that of Marc Ladreit de Lacharrière, but also of the company’s secured debt creditors. In addition, the project proposes to convert into capital 1.5 billion euros of secured debt and all of the unsecured debt, ie the top of the range targeted by Casino.

The Niel-Pigasse-Zouari project is more complicated. The contribution of fresh money amounts to 900 million euros but half would consist of the issuance of a “super senior” debt, that is to say the closest to the actions in terms of risk. The other half would be financed by a capital increase to which 3F, the company of the three entrepreneurs, would subscribe up to 175 million euros, the balance being financed by creditors. And this project plans to convert only 300 million of secured debt into capital.

Ultimately, according to Casino’s indications, Kretinsky’s project would reduce debt by more than 5 billion euros against just under 3 billion euros in the case of Niel-Pigasse-Zouari.

Even if the aim of this restructuring is above all to reduce the debt of the company, the question is also to know what will remain in the end for the shareholders of Casino? Answer: nothing or almost nothing.

According to the company’s presentation, in the case of Daniel Kretinsky’s proposal, the current shareholders would only own… 0.20% of the capital. This percentage obviously excludes the holding companies of Daniel Kretinsky and Marc Ladreit de Lacharrière, already shareholders, and which hold 50.1% of the capital. And in the case of the Niel-Pigasse-Zouari project, this percentage would drop to… 0.03%.

A massive dilution therefore, greater than 99% according to these indications. As a result, Casino shares, which had been suspended since late Tuesday morning, collapsed on Wednesday when they resumed trading, plunging more than 30% to 3.214 euros.

Currently in conciliation with its creditors, Casino expects to reach an agreement on its restructuring by the end of July.