France’s Casino Guichard-Perrachon SA
CO,
-1.16%
said Monday that an investor has made an offer to subscribe to a capital increase for up to 750 million euros ($824.4 million,) a move that could lead to a change of control of the debt-laden group and a “very significant” dilution of existing shareholdings. The offer was made by EP Global Commerce, a company controlled by Czech billionaire Daniel Kretinsky, whose Vesa Equity Investment holds a stake of around 10% in Casino.
Alongside the EUR750 million capital raise subscribed to by EP Global, another shareholder, Fimalac, would be offered a capital increase of up to EUR150 million, and existing shareholders one for an amount of up to EUR200 million, the company said. The deal, if agreed and “depending on the financial parameters ultimately agreed between the parties, [could] lead to a change of control of Casino and to a dilution which might be very significant for existing shareholders,” the company said. Conditions for the deal include a reduction in the group’s heavy gross debt and approval from antitrust and market regulators, as well as from creditors, Casino said, adding that it would analyze EP Global’s proposal over the coming weeks. Write to Joshua Kirby at [email protected]; @joshualeokirby
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