Kretinsky and partner raise stake in Casino
PARIS: Czech businessman Daniel Kretinsky and his junior partner Patrik Tkac said yesterday that they had raised their stake in Casino Guichard-Perrachon SA to 5.64% from 4.63%, in a further show of support to the troubled French retailer.
The move comes as CEO and controlling shareholder Jean-Charles Naouri is hunting for ways to ease the company’s debts — and those of parent company Rallye SA — in part through asset sales.
Casino, which faces fierce competition in its home market from the likes of Amazon. com Inc, last week slashed its 2019 profit outlook, saying transport strikes in France against pension reforms weighed on its fourth quarter.
The duo, who bought their initial stake via their Vesa Equity Investment Sarl, became Casino’s second-largest shareholder in September.
Kretinsky and Tkac yesterday reiterated their support for Naouri’s plans, saying: “We continue to give our full support to the management of the Casino and our confidence in its ability to implement its long-term strategic vision, to which we subscribe.”
Kretinsky, who also owns a stake in Germany supermarket group Metro AG, and has holdings in French newspaper Le Monde and Czech soccer club Sparta Prague, described Casino as “one of the European leaders best able to respond to the profound changes in the sector.”
Casino, with a market value of €4.22 billion and group consolidated net debt of €4.7 billion at the end of June 2019, is engaged in a €4.5 billion disposal plan which includes the sale of its Leader Price discount chain.
Naouri said in the joint statement that, as announced in September, he would propose to the board of directors of Casino the appointment of a representative of Vesa.