French Retailer Casino To Raise 470 Million Euros In A Deal With Apollo Global Management

French Retailer Casino To Raise 470 Million Euros In A Deal With Apollo Global Management

French retailer casino has been facing the brunt of investors due to its debt pile and slashed credit ratings. The cash flow has been a nightmare for the retailer casino. Citing high debts and poor cash flow, global credit rating agency Moodys had slashed the company’s credit ratings by two notches earlier this month.

The credit rating cut also impacted its shares which fell by over two percent the very next day.

The company’s poor cash flow and debt crisis are not new. Earlier this year the management had also announced its strategic plan to raise funds by disposing assets over a period of three years to improve its financial statement.

As a part of the same strategy to dispose of assets, the company officials confirmed on Monday that they have struck a deal with the US-based asset management firm Apollo Global Management.

According to the agreement, the French retailer casino will sell a portfolio of 12 Casino hypermarkets and 20 supermarkets for up to 470 million euros.

As reported by global news agency Reuters, the transaction is to be completed by the end of July. However, around 80 percent of the value of the assets are to be paid by that time.

The French retailer casino has also been facing stiff competition in the domestic market from brands like Carrefour and Auchan.

The company had also revised its limits to sell non-strategic assets to a minimum of 2.5 billion euros by the first quarter of 2020.

While they have been trying all means to improve the cash flow and improve credit ratings the analysts at top credit rating agencies are not very convinced with the company’s current financial position.

Leave a Reply

Your email address will not be published. Required fields are marked *