Who can save Casino? The agro-industrial group InVivo and its subsidiary Teract put an end to their merger project with the Saint-Etienne distributor in difficulty (Monoprix, Franprix, Cdiscount, etc.), this Thursday, June 8. Bad news that does not prevent the company from attracting covetousness. Like the Niel-Pigasse-Zouari trio on one side and the Czech billionaire Daniel Kretinsky on the other.
The founder of Free, Xavier Niel, the investment banker Matthieu Pigasse and the distribution specialist Moez-Alexandre Zouari, the three co-founders of Teract, announced in the wake “on their behalf” that they wanted to “bring out an industrial and financial sustainability” for Casino, crushed by the weight of its debt.
It will therefore be without Teract as an entity even if a “potential operational partnership” remains on the table, according to a press release from Teract and Casino. And without InVivo, which owns more than 75% of Teract (Gamm Vert, Jardiland, Boulangeries Louise brands) and union of 188 agricultural cooperatives. “Teract and the Casino group have decided, by mutual agreement, not to continue” their discussions, writes Casino. And this, “considering the evolution of the context”, specified Teract.
The specialized media The letter a had indicated a little earlier Thursday that InVivo would not wish to invest “a penny in the current takeover operation” of Casino, having also been mobilized since the end of March on a project to acquire the Australian malt producer United Malt Group , for up to 1.5 billion Australian dollars (930 million euros).
This new episode does not call into question the agreement previously concluded with the third chain of supermarkets in France, Intermarché, which had for a time joined discussions with Teract but had finally concluded an agreement with Casino at the end of May. An agreement providing on the one hand for a strengthening of their purchasing partnerships, on the other hand for the sale of around a hundred stores.
Daniel Kretinsky in the ranks
So what is the action plan to save Casino? Xavier Niel, Matthieu Pigasse and Moez-Alexandre Zouari – who is also a major franchisee of the Casino group – plan “a strengthening of Casino’s equity” as well as an “adaptation of the existing debt to the group’s capacities and the preservation of its growth potential.
The idea, according to press information confirmed to AFP on Thursday by a source familiar with the matter, would be to create a financial vehicle topped up with 300 million euros, and to invite Casino’s creditors, as well as ” all players interested in participating in the recovery of a historic player in distribution”, to provide new capital. The interest for these investors is to reach a total of just over 1 billion euros with the help of existing shareholders, potential investors, but also creditors, reports The world.
Present in the capital of Fnac Darty and owner of several French media, Daniel Kretinsky for his part proposed to certain creditors to pay approximately 40% of the debts due, according to press information at the end of May confirmed by a source familiar with the matter, either in liquid, either by conversion into shares or by a combination of the two. He offered to provide the distributor with 750 million euros as part of a capital increase. Casino had formalized on Friday its entry into a conciliation procedure for a period of four months in order to renegotiate its large debt. This amicable procedure, which leaves the management of the group in charge – unlike a situation of receivership for example – should make it possible to conclude an agreement with its creditors with a view to restructuring the debt.
Bad luck for Jean-Chales Naouri
The group, which employs 200,000 people worldwide, including a large quarter in France under many brands, was indebted to the tune of 6.4 billion euros at the end of 2022, including 4.5 billion on its activity in France, according to its official data. “Deleveraging is a priority,” insisted CFO David Lubek on May 10. Time is running out as a €553 million covered bond redemption deadline approaches in January 2024. At the same time, supermarkets are going through a rough patch as inflation in France is expected to decelerate from this summer.
A high-flying financier and former senior civil servant, the CEO of Casino Jean-Charles Naouri has long enjoyed an incomparable aura in French business circles, but his star has faded due to the financial difficulties of his group, and now of a judicial inquiry. Jean-Charles Naouri, spent a day in police custody, in a case of price manipulation and alleged insider trading. He was released without charge against him at this stage. On this occasion, Xavier Niel had given him his support, “a day when everyone wants to hit him”, saluting on BFM Business his “great journey”. In the meantime, the subject of the future of Casino is closely followed at the Ministry of Economy and Finance. Objective for the executive: to avoid social damage.