Casino Group: The Casino Group signs an agreement with funds managed by affiliates of Apollo Global Management for the sale of 32 store properties worth 470 million euros, of which 374 million euros to be received by the end of July 2019

The Casino Group signs an agreement with funds managed by affiliates of Apollo Global Management for the sale of 32 store properties worth 470 million euros, of which 374 million euros to be received by the end of July 2019

Paris, April 22 2019,

The Casino Group announces that it has signed an agreement with funds managed by affiliates of Apollo Global Management, LLC to sell a portfolio of 12 Géant Casino hypermarkets and 20 Monoprix and Casino supermarkets properties.

Located primarily outside Paris, these 32 properties represent €26.6 million in annual rent, including €14.2 million from hypermarket assets and €12.4 million from Monoprix and supermarket assets and offer an estimated yield of 5.3% including transfer costs.

Nearly 80% of the value of the assets after deduction of registration fees, 374 million euros, are to be paid to the Casino Group at the closing of the proposed transaction which is expected to occur by the end of July 2019. The proposed transaction is subject to the provision of financing, the terms of which have been agreed in principle.

The Apollo Funds will create a special purpose vehicle to acquire the portfolio in order to enhance its value and sell it on the market under the best possible conditions. The Casino Group will receive an interest in this new entity, enabling it to benefit from the value created by the transaction.

Depending on the entity’s performance, the Casino Group could receive up to an additional €110 million in the next few years.

This operation is part of the additional €1 billion of non-core asset disposals to be completed by Q1 2020 (bringing the total non-core asset disposal plan to €2.5 billion) and more generally as part of the financial perspectives announced by the Group on 14 March 2019.

It does not change the annual growth target for France’s trading profit (+10%), driven by the rapid execution of the actions carried out since 2018 (closures and disposals of loss-making stores, Horizon purchasing alliance, cost savings plan, new sources of revenues, development of buoyant categories).

 

ANALYST AND INVESTOR CONTACTS
Régine Gaggioli – [phone]
[e-mail]
or

[phone]
[e-mail]

 PRESS CONTACTS
Casino Group – Direction of Communication
Stéphanie ABADIE - [e-mail] - [phone]

or

[phone] - [e-mail]

Agence IMAGE 7
Karine ALLOUIS  -  [phone] - [e-mail]
Grégoire LUCAS - [e-mail]

Disclaimer

This press release was prepared solely for information purposes, and should not be construed as a solicitation or an offer to buy or sell securities or related financial instruments. Likewise, it does not provide and should not be treated as providing investment advice. It has no connection with the specific investment objectives, financial situation or needs of any receiver. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgement. All the opinions expressed herein are subject to change without notice.

 

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• 2019 04 22 - PR - Signing of an agreement between the Casino Group and funds managed by affiliates of Apollo for the sale of 32 store properties