Casino Guichard Perrachon SA (OTC:CGUIF) (OTC:CGUSY) has received a conditional letter of intent from EP Global Commerce a.s. for a €1.1 billion investment.
EP Global Commerce is a Czech company controlled by investor Daniel Kretinsky.
Kretinsky has offered to subscribe to a reserved capital increase of up to €750 million in the share capital of Casino, Guichard-Perrachon.
EP Global Commerce further intends to offer Fimalac, a shareholder of the company, the opportunity to subscribe to a reserved capital increase of up to €150 million.
A capital increase with preferential subscription rights would also be offered to Casino’s existing shareholders for an amount of up to €200 million.
Casino said it will examine the plan.
The proposal will include cash repurchases of Casino’s debt, converting it into equity.
The move will lead to a change of control for Casino.
Casino will seek the consent of certain of its lenders, in accordance with the terms of the relevant credit agreements.
Casino also announced talks regarding a potential combination with TERACT and the discussions with Groupement Les Mousquetaires.
Price Action: CGUIF shares closed at $7.69 on Friday.

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