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Casino identifies non-core assets and announces EUR 1.5bn asset sale plan
Posted on Tuesday, 12 June 2018 10:24
French retailer Groupe Casino, also known as the Casino Group, is looking to raise about EUR 1.50 billion from the sale of certain non-core operations in a bid to reduce its growing debt pile.
Should the assets be sold in a bulk transaction, it would represent the largest such announcement in the France-based wholesale and retail trade sector of 2018 to date, according to Zephyr, the M&A database published by Bureau van Dijk.
Casino has been reviewing its portfolio and has identified the businesses it does not deem to be essential, which mainly include real estate.
The company, which has seen shares decline to a 21-year low due to concerns over the group’s obligations, Reuters reported earlier, is planning to reduce its debt by EUR 1.00 billion by the end of 2018.
Casino observed that the sale plan complements its efforts of trying to offload Brazilian electronics retailer Via Varejo for roughly EUR 3.00 billion.
The food retailer said it has good operational performance and like-for-like sales growth is expected to be higher in the second quarter than in Q1.
For fiscal 2018, Casino is expecting more than 10.0 per cent of organic growth for food retail trading profit in France and over a 10.0 per cent increase in consolidated trading profit.
Half of the planned sales are expected to complete in 2018, with the other 50.0 per cent to be offloaded in early 2019.
Casino has more than 12,000 stores worldwide in France, Latin America and the Indian Ocean region.
With a workforce of more than 220,000 people, the company generated net sales of EUR 38.00 billion for fiscal 2017, with sales totalling EUR 8.90 billion in the three months to 31st March 2018, down 3.8 per cent on Q1 2017.
Zephyr shows that one of the largest deals announced in the French wholesale and retail trade this year involved supermarket and grocery store operator Carrefour raising USD 500.00 million in a convertible bond issue.
© Zephus Ltd