This is a general meeting that promises to be lively. This Wednesday, May 10, at 10:30 a.m., the Casino group is bringing together its shareholders for this annual meeting, in a very turbulent context for the distributor, if only in stock market matters. Small carriers had already grumbled last year, lamenting the weakness of the course. Since then, the action has again lost more than half of its value. In three years, it collapsed by almost 80%.
Heavy indebtedness and poor financial results have scared investors away in recent years and the context of inflation and rising interest rates has aggravated the situation. The group and its holding company, Rallye, are faced with increasingly pressing deadlines. At the end of March, Casino’s net financial debt, although reduced by 2.4 billion euros in one year due to asset sales, still reached 5.1 billion. However, with the rise in rates, the refinancing of bond maturities scheduled for early 2024 could prove painful. Above all, Casino lost money again in 2022 (316 million) and 2023 does not start under the best auspices with gross operating income before rents falling by 28% in the first quarter, to 204 million euros. What compromise the prospect of a rise in dividends to the parent company, itself faced with a wall of debt.
Two projects, two visions
But beyond these angry subjects, major maneuvers are being prepared and will not fail to raise questions from shareholders who will come to the Maison de la Chimie in Paris. Because obviously, Casino arouses lust. Two ambitious projects have come out of the cupboards in recent weeks, competitors but perhaps not incompatible, and supported by the most prominent businessmen of the moment. The first, with a very operational vision, is led by the company Teract. It would lead to the merger of Casino with this entity, controlled by the group of agricultural cooperatives InVivo and which also has Moez-Alexandre Zouari, Xavier Niel and Matthieu Pigasse in its capital. The result is the creation of two groups, the first uniting all or part of the Casino distribution brands (Franprix, Monoprix, etc.) with those of InVivo (Jardiland, Gamm Vert, Boulangerie Louise, etc.), and the second “in responsible for the supply of agricultural products, local and short circuits”. Teract, as well as other investors including Intermarché, would provide at least 500 million euros in fresh money to clean up Casino’s finances.
The second project is led by Daniel Kretinsky, who has been very active in French capitalism in recent years through investments in the media or even in Fnac Darty. His perspective is more financial: the Czech billionaire would join forces with Marc Ladreit de Lacharrière (Fimalac) for the occasion with a view to a capital increase of 1.1 billion euros, a massive bet in view of market capitalization. of Casino, of 774 million Tuesday evening. Bringing 750 million single-handedly, Daniel Kretinsky would take control of the group, a fundamental departure from the Teract storyline. Existing shareholders, including Rallye, would be heavily diluted. This capital increase project is not on the agenda of the meeting, points out an asset manager. It will therefore be necessary to count on the curiosity of the shareholders present to hope for a comment on the subject.
In both cases, pre-existing links with Casino. Moez-Alexandre Zouari, owner of Picard, is also the biggest franchisee of Jean-Charles Naouri’s group. For their part, Daniel Kretinsky and Marc Ladreit de Lacharrière are both already shareholders of the owner of Monoprix. This soap opera of French capitalism should still have its share of twists.