French mass-retail group Casino has revealed that a consortium led by Czech billionaire Daniel Kretinsky will own and control 53.7% of its share capital post-restructuring. 

The completion of the restructuring plan will also result in a massive dilution for current shareholders, who will retain only 0.3% of share capital.  

This shift in ownership is a consequence of the financial restructuring plan, which includes a debt restructuring estimated at €7.9bn ($8.65bn) by the end of 2023, followed by a significant cash injection into equity. 

The restructuring plan aims to address the group’s financial challenges and ensure fairness to current shareholders. 

The company reiterated these conclusions from a report by an independent expert, Sorgem Evaluation, which provided a detailed report indicating the necessity of the plan to prevent shareholder value from plummeting. 

Sorgem Evaluation’s report concluded that without the restructuring, Casino’s enterprise value of €3.71bn is less than its net debt of €7.88bn. 

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By GlobalData

According to Sorgem Evaluation, the current economic value per share as well as the value per 100 shares is effectively zero.  

Post-restructure, however, the value per 100 shares is estimated to be €5, aligning closely with the capital increase subscription price reserved for the consortium.

The plan’s main terms involve reducing Casino’s net debt by 75%, with the consortium taking control of post-cash equity contributions.  

Despite the dilution facing current shareholders, the restructuring plan also entails a near-total discount for unsecured creditors and a discount for secured creditors which exceeds 20%.  

In July 2023, Casino confirmed talks with the consortium to strengthen the company’s equity capital. 

As part of the restructuring plan, Casino Group also began discussions to divest all its hypermarkets and supermarkets to Les Mousquetaires and Auchan Retail.