In This Article:
*
Deal would boost Kretinsky's stake
*
Comes as Casino in exclusive talks with Teract
*
Casino plans to analyse proposal, continue Teract talks
(Adds detail from statement, source)
By Dominique Vidalon and Mathieu Rosemain
PARIS, April 24 (Reuters) - Czech billionaire Daniel Kretinsky is offering to take control of debt-laden French supermarket chain Casino through a 1.1-billion euro capital increase, challenging a proposed tie-up between Casino and smaller retailer Teract.
The deal would bring a string of well-known retail brands such as Monoprix and Franprix under Kretinsky's umbrella in France, where he has increased his exposure in recent years, and offer a way out for Casino's owner, 74-year-old Jean-Charles Naouri.
Casino's e-commerce retail arm CDiscount is also widely believed to be a target for Fnac Darty, whose top investor is Kretinsky.
Kretinsky, who built one of Europe's largest energy groups through more than a decade of deals, has been diversifying into retail, media and other areas.
He owns a stake in French newspaper Le Monde, France's biggest private TV network TF1 and is in talks with media group Vivendi to acquire publishing group Editis.
Casino shares rose 3% on Monday after news of Kretinsky's offer. They slumped to record lows after rating agency Moody's cut its long-term debt rating further into junk territory last month, its market value now around 700 million euros versus 11 billion in 2014.
TERACT TALKS
With around 3 billion euros of debt maturing in 2024 and 2025, Casino has been selling assets to meet debt repayments, including a stake in its Brazilian business Assai.
Kretinsky's offer comes as Casino conducts exclusive talks to combine its French retail business with Teract, a company backed by billionaire Xavier Niel.
On Monday, Casino announced that Groupement Les Mousquetaires, owner of supermarket chain Intermarche, had joined those tie-up talks.
Separately, it said EP Global Commerce, a Czech company controlled by Kretinsky, had offered to subscribe to a capital increase worth 1.1 billion euros.
Under the deal, Kretinsky's entity would subscribe to a reserved capital increase of up to 750 million euros, while No. 3 shareholder Fimalac, the holding of billionaire Marc Ladreit de Lacharriere, would buy into a share sale of up to 150 million euros. Casino's other existing shareholders would take a further 200 million euros.
Two sources close to the matter said the capital increase would give Kretinsky, already Casino's second biggest shareholder with around 10%, a more than 40% stake.