Casino Shares Rise After Vesa Equity Investment Acquires 4.63% Stake
September 05 2019 - 5:13AM
Dow Jones News
By Antonia Di Lorenzo
Shares in Casino Guichard-Perrachon SA (CO.FR) rose Thursday
after the French retailer said that Czech businessman Daniel
Kretinsky and his partner Patrik Tkac acquired a 4.63% stake
through their investment firm Vesa Equity Investment Sarl.
"This acquisition of a stake in Casino Guichard-Perrachon
reflects our conviction that it is the best-positioned retail group
on the French market and one of the European leaders best placed to
respond to the profound sector transformations," Mr. Kretinsky
said.
Casino shares rose on the news, trading 5.0% higher at EUR43.05
at 0832 GMT.
Analysts at Bernstein noted that according to French
regulations, companies don't need to disclose a shareholding of
under 5%. It called the release of the news "confidence
building."
While the company wants to assure investors that its future is
secure, "most investors are not convinced of that message,"
Bernstein said. Some analysts, including HSBC, have cast doubt on
Casino's asset-sale strategy, saying it could jeopardize its
position long-term.
Casino Chief Executive Jean-Charles Naouri said he would propose
appointing a Vesa representative to the board of directors.
Messrs. Kretinsky and Tkac hold other joint investments in the
European media and e-commerce sectors, Casino said. According to
the company, they hold a 17.52% stake in Metro AG Group and options
to increase it, as well as a 40% stake in Mall Group, an e-commerce
company active in Central and Eastern Europe.
Write to Antonia Di Lorenzo at antonia.dilorenzo@wsj.com;
@AntoniaDL89
(END) Dow Jones Newswires
September 05, 2019 04:58 ET (08:58 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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