(News Bulletin 247) – The specialist in cultural products jumps on the Paris Stock Exchange after BFM Business once again reported that the Czech businessman wanted to buy the block of the German Ceconomy in the capital of the French company and then remove the group from the coast.

Fnac Darty is starting the week off on the right foot, driven by renewed speculation around the issue. The specialist in the sale of cultural goods and household appliances rose 7.50% around 11:00 a.m. this Monday, recording the largest increase in the SBF 120.

The buyer flow observed this Monday should be put into perspective with an article from BFM Business reporting a potential delisting of Fnac Darty at the end of last week.

According to information from our colleagues, businessman Daniel Kretinsky is still interested in taking over the 24% of his German shareholder Ceconomy and then taking control of Fnac Darty before launching a public takeover offer on the capital balance on the stock market.

“An exit from the stock market would then be considered as the price reaches its historic low, excluding Covid. It is trading at 20 euros while Fnac was listed on the stock market ten years ago, at 22 euros,” explained BFM Business.

By buying Ceconomy’s share, Daniel Kretinsky could consider taking Fnac Darty out of the stock market, since it would cross the threshold of 30% of the capital, synonymous with a mandatory public purchase offer (OPA). On the Paris Stock Exchange, the Fnac Darty share is appreciating, therefore, one session late, in reaction to the publication of information from BFM Business.

“At the current share price this (the press information from BFM Business, Editor’s note) is enough to raise hope about the value, even if the market reacts one session later,” judges an analyst.

A share buyback to restore confidence

Minority shareholders can therefore hope in the long term that the file will move, with a potential premium. It must be said that Fnac Darty’s journey since its IPO has been strewn with pitfalls. The stock has seen its price fall 65% over five years, including 40% in 2023 alone. The company is on the front line of the purchasing power crisis, with consumers preferring to defer their spending in favor of essential goods.

Even if activity in the third quarter showed resistance, Fnac Darty is cautious for the end of the year. In a climate of “degraded household confidence”, the group lowered its operating profit target for the year 2023, citing an “initially anticipated (weaker) rebound in consumption”.

So to give some momentum to its title, Fnac Darty announced the launch of a 20 million euro share buyback plan. The company now has free rein to initiate such a plan since its financial situation has recently improved with a favorable judgment in the United Kingdom on the Comet dispute.

“The decision rendered at first instance by the High Court of London having been overturned, the group should receive by the end of the year the entire sum initially paid as well as reimbursement of the procedural costs incurred and interest , a positive impact on its cash flow estimated at around 130 million euros”, explained Fnac Darty in its press release.