Can a Czech billionaire rescue Casino?
It is something of a revolution in the country which once casino.html” title=”Is it possible for a Czech billionaire to save a struggling casino?”>deemed yogurt-making to be a strategic industry. For the first time in the history of the fifth republic one of France’s big retail chains will be in foreign hands. Daniel Kretinsky, a Czech tycoon who made his fortune investing in coal and natural gas, is on the verge of taking control of the Casino group, which includes a chain of hypermarkets, as well as Monoprix and Franprix, two other retail chains, and convenience stores.
In May Casino, collapsing under a mountain of debt, entered talks with creditors, shareholders and the French state to shore up its balance-sheet. Mr Kretinsky, whose existing 10% stake makes him the firm’s second-biggest shareholder, joined forces with Marc Ladreit de Lacharrière, a fellow billionaire whose holding company, Fimalac, is the third-biggest, to present a rescue plan. A trio of French tycoons, Xavier Niel, Matthieu Pigasse and Moez-Alexandre Zouari, came out with a rival offer, with the backing of Attestor, a hedge fund that owns a big slug of Casino’s debt.
On July 15th Mr Kretinsky submitted a revised plan, this time with the backing of Attestor, which defected from its erstwhile partners. He and his collaborators are proposing to inject €925m ($1bn) into the ailing business in return for a 53% stake. A further €275m is likely to be provided by other creditors, but backstopped by Mr Kretinsky, Mr Ladreit de Lacharrière and Attestor. They will also convert €4.7bn of Casino’s debt into equity.
2023-07-20 08:21:29
Original from www.economist.com
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