Casino Shares Rise After Vesa Equity Investment Acquires 4.63% Stake

   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 [e-mail]; @AntoniaDL89

(END) Dow Jones Newswires

September 05, 2019 04:58 ET (08:58 GMT)

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