Mass-market retailer Groupe Casino has confirmed that it has received a preliminary letter of intent (LOI) from a group of investors to help strengthen its capital position.
The LOI outlines a proposal from Xavier Niel, Matthieu Pigasse and Moez-Alexandre Zouari to boost the equity of Groupe Casino Guichard Perrachon by up to €1.1bn ($1.19bn).
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The investors will initially provide funds of €200m to €300m. The remaining amount is to be subscribed by partners associated with their project.
In a statement, Groupe Casino said that these partners may include current creditors who are interested in reinvesting in the capital of the company.
Groupe Casino said: “At this stage, this is not a firm offer but a preliminary expression of interest, which may not be successful. The group will study this expression of interest and keep the market informed in the event of any new material elements.”
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In a separate development, Groupe Casino also received a confirmation letter from holding company Fimalac Group for potential participation of €150m in the capital increase proposal from EP Global Commerce.
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By GlobalDataThese developments come after the supermarket chain officially started court-backed negotiations with its creditors last month.
Groupe Casino is headed and controlled by Jean-Charles Naouri. It is one of the leading food retailers, with a network of more than 11,500 stores across France and Latin America.
The retailer had consolidated net debt of €6.4bn as of the end of fiscal year 2022, up from €5.9bn in 2021.
In the first quarter of fiscal 2023, the company generated €5.4bn in consolidated net sales, up 1.0% on a same-store basis compared to the same period a year ago.
