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Atos falls 14% as embattled French IT firms weigh rescue deals that will result in ‘massive dilution’
This photograph taken on April 26, 2024 shows the headquarters of French information technology multinational ATOS in Bezons, near Paris. (Photo by Ludovic MARIN/AFP) (Photo by LUDOVIC MARIN/AFP via Getty Images)
Ludovic Marín | Afp | Getty Images
The two restructuring deals under discussion are led by Czech billionaire Daniel Kretinsky and Atos’ main shareholder David Layani. The company will make its choice by Wednesday.
“The implementation of the proposals will in all cases result in a massive dilution of the current shareholders of Atos SE,” Atos said in a statement. declaration on Monday.
The company said it was working with financial creditors to secure maximum support for one of the deals by June 5, with the aim of reaching a final agreement on the restructuring in July.
Kretinsky had previously spoken to Atos about buying parts of its business, which went bankrupt. Layani’s IT consultancy firm Onepoint held more than 11% of Atos’ share capital and voting rights as of December 2023, according to its website.
The two proposals are the last two remaining in a months-long process by Atos considering possible restructuring deals. Four proposals were posted on the Atos website in May, including from Kretinsky’s EP Equity Investment in partnership with investment firm Attestor Limited, Layani’s Onepoint with investment firm Butler Industries, Atos’ financial creditors and US private equity firm Bain Capital.
The Bain Capital deal was rejected by Atos, he saidwhile the company’s financial creditors joined forces with Layani.
The agreements come after a series of failed negotiations over the acquisition of all or part of the Atos business. Airbus also held such discussions.
In April, Atos said it had received a French government letter of intent to potentially acquire parts of its business. At the time, the company said a non-binding offer could be made in early June. On Monday, Atos noted that due diligence on the deal was still ongoing.
Atos maintains several sensitive contracts with the French authorities and the country’s military. It also manages data and cybersecurity for the Paris 2024 Olympic Games.
The company has been facing mounting financial problems for some time, including mounting debt. At the end of the first quarter, Atos’ net debt was 3.9 billion euros ($4.2 billion), the company he said in April.