The Kretinsky-led consortium will own 53.7% of the casino's capital.

A group led by Czech billionaire Daniel Kretinsky is set to own 53.7% of French retailer Casino after a restructuring plan.

Current shareholders will see a significant dilution to about 0.3%. An independent report by Sorgem Evaluation deemed the plan fair to existing shareholders.

Casino highlighted that without the plan, its enterprise value of €3.71 billion is much lower than its €7.88 billion net debt resulting in zero economic value per 100 shares.

 

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The news that a group led by Czech billionaire Daniel Kretinsky will own 53.7% of French retailer Casino after a restructuring plan is certainly significant. It represents a significant shift in ownership and control of the company.

Under the restructuring plan, current shareholders will see their ownership diluted to about 0.3%, which is a considerable reduction. However, an independent report by Sorgem Evaluation has deemed the plan fair to existing shareholders. This independent analysis is crucial as it ensures that the interests of current shareholders are being considered and protected.

Casino has highlighted the need for this restructuring plan, as it currently has an enterprise value of €3.71 billion, which is significantly lower than its €7.88 billion net debt. This means that without the plan, there is zero economic value per 100 shares. The restructuring plan aims to address this issue by increasing the value of each 100 shares to around €5, which is close to the consortium subscription price. This suggests that the plan is intended to alleviate the company's debt burden and create a more favorable economic situation for shareholders.

It's important to note that restructuring plans like this are not uncommon in the business world. They are often undertaken to address financial challenges and provide a path to sustainability for companies that are struggling under a heavy debt load. In this case, the consortium led by Daniel Kretinsky has stepped in to provide the necessary capital injection to support Casino's restructuring efforts.

Overall, this development represents a major shift in ownership and control of Casino, and it will have significant implications for both current shareholders and the future direction of the company. It will be interesting to see how this restructuring plan plays out and how it impacts the financial health and performance of Casino moving forward.