Casino Group board approves second phase of asset disposal plan

20 August 2019 (Last Updated August 20th, 2019 12:37)

French retailer Casino Group has received approval from its board of directors for new asset arbitrations in the country, targeting a further €2bn amount.

Casino Group board approves second phase of asset disposal plan
Casino Group board approves second phase of asset disposal plan. Credit: Groupe Casino

French retailer Casino Group has received approval from its board of directors for new asset arbitrations in the country, targeting a further €2bn amount.

The second phase of the disposal plan is expected to complete by the end of the first quarter of 2021.

As part of its €2.5bn first phase of the disposal plan, the company has already signed agreements to dispose various assets worth €2.1bn so far. It expects to close the disposal by the first quarter of next year.

“The group will thus have, in France, a set of activities adapted to the new needs of consumers and benefiting from synergies accentuated by the consistency of their positioning.”

The retailer has completed its 2022 strategic plan and is on track to focus its development on segments such as e-commerce, premium and convenience.

In addition, the company will focus on advancement in new high-growth businesses such as energy, data and advertising, data centres, as well as on generating recurring cash flows.

Casino Group said: “These strategic directions, which accentuate the priority axes of the 2019-2021 Plan, will enable Casino to capitalise on its leadership positions and pursue the growth of its results in a French market undergoing profound transformation.”

“This process completes the transformation of the business model that has been started for several years.

“The group will thus have, in France, a set of activities adapted to the new needs of consumers and benefiting from synergies accentuated by the consistency of their positioning.”

In another development, Casino board has approved a final amendment to its offer to buy stake in Companhia Brasileira de Distribuicao Grupo Pao de Acucar (GPA). Exito indirectly holds 50% equity interest in GPA through French company Segisor.

Last month, the French retailer agreed to sell its subsidiary Vindémia to automotive distribution and retail company GBH for €219m.