Czech billionaire Kretinsky nears Casino acquisition as rivals withdraw offer.

Breaking News: Czech Billionaire⁤ Nears ⁢Takeover ⁢of Casino

By John⁣ Irish‌ and Mathieu ⁢Rosemain

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PARIS ⁣(Reuters)⁤ – ⁤Czech ⁤billionaire⁢ Daniel⁤ Kretinsky stepped closer to‍ taking over ​debt-laden​ French retailer ‍Casino on⁤ Monday after‍ rival bidders pulled⁤ out of the race.

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The⁢ move‍ would ⁤bring⁤ an end to the⁢ 30-year reign⁤ of veteran entrepreneur⁣ Jean-Charles ⁤Naouri ⁤as France’s traditional ​retail‌ sector​ adapts⁤ to‌ the rise ‌of‌ e-commerce ⁣and‍ hard-discount ⁢supermarket chains.

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Naouri, ⁤74,⁢ controls Casino via‍ his listed ⁤holding Rallye.

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Kretinsky ‌has been‍ vying to take control ⁣of ⁣Casino ‌against the ⁤3F‌ Holding group, led by telecoms entrepreneur Xavier Niel, investment banker Matthieu⁣ Pigasse and⁣ businessman Moez-Alexandre⁣ Zouari.

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3F‍ said late ‌on‍ Sunday it was ⁢dropping its bid, citing​ a⁢ “biased⁣ process” ‌and ⁢a⁢ lack of‍ information, and⁣ after​ one ⁣of its⁤ backers⁣ –⁤ the ⁣Attestor ​Capital fund – switched sides‌ to⁤ support Kretinsky’s‌ bid.

It ‍leaves Kretinsky, who submitted​ a revised ​offer over​ the⁤ weekend⁤ proposing⁣ a ⁣1.2 billion euro ($1.35 billion)⁢ equity injection in ‌Casino, as the⁤ only⁢ bidder. ⁣

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Casino, ⁤which is ⁣saddled ⁣with ​net debt ‌of 6.4⁢ billion⁤ euros and is teetering on the brink of ⁤default,⁤ was ⁣due to⁤ release a⁣ statement on ⁢Wednesday after⁢ its board examined‌ Kretinsky’s bid.

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Casino’s creditors and management ⁢will attend a‍ meeting hosted ⁣by CIRI –‍ the ‍finance ministry body that‌ helps⁢ distressed⁢ companies and​ their‌ creditors draw up restructuring plans ⁢– on⁣ Monday,‌ two sources‌ close‍ to the matter said.

The ‌group’s shares‍ were ⁢suspended on‍ Monday.

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In a⁤ statement on⁣ Sunday, ⁤3F said it had decided to ‌pull ⁢out as ⁣it “refuses to participate in a ‌biased ⁣process – the company having‌ obviously already chosen its buyer”.

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Casino and ⁢France’s ‌finance ministry declined⁤ to comment.⁤

Along⁤ with‌ Marc⁣ Ladreit de‍ Lacharrière’s Fimalac, Kretinsky’s⁤ offer​ would give him​ and Attestor a‍ combined 50.3% ⁣stake‍ in ⁤France’s ‍sixth-largest retailer, two sources ‍close to⁤ the ​matter ⁢said.

Kretinsky and Ladreit‌ de ‍Lacharriere would⁤ control the⁣ investment​ vehicle ⁣behind⁣ the⁢ 1.2 ⁢billion-euro equity injection,‍ one of the sources ​said.⁤

The bidders ‌would also convert ⁢almost 5 ⁢billion euros ⁤of ⁢debt ‍into ​equity,⁣ including⁢ 1.3 billion⁢ euros worth​ of ‌secured debt.⁣

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Kretinsky ‍and his EP Global​ Commerce‌ investment vehicle‌ could ⁢not‍ immediately be⁢ reached‍ for comment.

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Kretinsky,​ 47, a​ former ⁤investment bank ​lawyer who ⁣built ⁣one ⁣of⁤ Europe’s ⁣largest ‍energy​ groups, ‌has been​ scooping up‍ assets ‍into⁤ retail, media and ⁣other‌ areas after the⁤ energy ⁣crisis ‍boosted ⁤profits ⁣at⁢ his power,⁣ gas and ‌coal‌ businesses. 

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He‌ has⁣ gone on​ a ⁢buying ⁣spree in Britain,‌ France and Germany, ​buying stakes‌ in French ‍national ⁣newspaper Le⁢ Monde, ​retailer ⁣Fnac-Darty, British supermarket‍ chain Sainsbury’s⁣ and German ‍grocer ‍Metro.

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His net ​worth⁢ stands at⁤ $9.4 billion, according ‍to Forbes.

Casino, ⁢which as ‌been burning‍ through⁢ cash as revenue fell ‍and it lost ⁣market share ‌to ⁢rivals, ⁢has been ⁤in a debt ⁢restructuring negotiation with creditors aimed⁣ at saving the​ company from bankruptcy. The deadline for an‍ overall debt⁤ restructuring ‌deal‍ has been‍ set for ⁤July⁣ 27.

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The ⁢French government is concerned about possible job‌ cuts at ​Casino,⁤ which ​employed ‌50,000 people ‍in the country ​at ⁢the⁤ end of ⁢last‌ year.

“Our desire is to make ⁤the greatest ⁣effort ​possible to preserve⁢ the maximum possible, rational⁣ perimeter of Casino,” Kretinsky told⁢ the⁤ Financial Times on ‌Sunday.

($1 = 0.8892 euros)

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⁣(Writing⁣ by John Irish and⁢ Silvia Aloisi; Editing​ by David‌ Holmes, ⁢ Emelia Sithole-Matarise⁤ and​ Mike ⁤Harrison)

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