Oct 22, 2018
Retailer Casino's parent Rallye gets bid offer for sports arm
Oct 22, 2018
Private equity firm Equistone Partners Europe had made a binding offer for Courir for an equity value of 283 million euros (249.3 million pounds), and that the deal could be completed in the first half of 2019, Rallye said on Monday.
The sale of Courir marks the latest planned asset disposal by Casino and Rallye to ease concerns over their financial position, with Casino shares having fallen some 20 percent so far in 2018 on concerns over debts at both companies.
Worries over those debts have led to hedge funds targeting Casino by betting on its shares falling further in future.
Earlier this month, Casino agreed to sell some properties of its Monoprix chain for 565 million euros, while in September five banks granted Rallye a new 500 million euro credit line.
Within the Casino group, dividends from Casino are used to maintain Rallye’s debt interest payments. The shares of Casino that are held by Rallye are also pledged as collateral to banks in order for Rallye to obtain more financing.
Last week, Casino reported that sales growth had accelerated in the third quarter, and it also kept its annual financial targets.
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