Casino - comment

Another announcement from the Company, but not the one we are all waiting for. Casino confirmed, what was already circulating via press reports, that Xavier Niel, Matthieu Pigasse and Moez-Alexandre Zouari (3F) are proposing an equity raise at CGP of c.€1.1bn, with €200-300m would be invested directly by them. The balance is to be subscribed by partners, including creditors via debt-for-equity swaps. 

The overall amount is the same as Křetínský’s proposal (VESA Equity Investment), albeit the Vesa proposal appears to be raising €900m in fresh cash. The 3F proposal appears light on fresh cash as we tend to agree with press reports that the overall business needs €500-600m to invest in pricing and the overall operations of the business.  

More suitors are good news for bondholders as long as they don’t collude down the line. For now however, in the Conciliation Process, it is Naouri who holds the cards and everyone is waiting for him / CGP to play the next one.