(Adds details)
By Dominique Vidalon
PARIS, April 24 (Reuters) - Czech billionaire Daniel
Kretinsky is offering to take control of debt-laden Casino through a 1.1 billion euros capital increase, in a
rival proposal to a planned tie-up between Casino and French
retailer Teract .
Casino shares have slumped after rating agency Moody's cut
its long-term debt rating further into junk territory last
month, citing market share losses, weak liquidity and high debt.
The company, led by Jean-Charles Naouri, has around 3
billion euros ($3.3 billion) of debt maturing between 2024 and
2025.
It is in exclusive talks to combine its French retail
business with Teract, a company backed by billionaire Xavier
Niel, as it seeks to reassure investors over its ability to
generate cash and reduce debt.
On Monday it said that EP Global Commerce, a Czech company
controlled by Kretinsky, had offered to subscribe to a capital
increase at Casino worth a total of 1.1 billion euros ($1.2
billion).
A source close to the matter said the capital increase
would give Kretinski, who is already Casino's second biggest
shareholder with around 10%, a 40% stake in the company.
Casino said in a separate announcement on Monday that
Groupement Les Mousquetaires, owner of supermarket chain
Intermarche, had joined the exclusive tie-up talks with Teract.
Casino said it planned to analyse EP Global Commerce’s
proposal over the coming weeks, and is also in continued
discussions with Teract and Groupement Les Mousquetaires.
($1 = 0.9104 euros)
(Reporting by Dominique Vidalon and Mathieu Rosemain, ediitng
by Silvia Aloisi)
