Oddo BHF maintains its 'underperform' rating on Atos shares, with a price target reduced from €4.7 to €0.09.

Atos has decided to accept the financial restructuring proposal submitted by the consortium comprising onepoint, Butler Industries and Econocom, as well as a group of certain of the Company's financial creditors.

The aim is to reach a final agreement, which will then be implemented through a dedicated fast-track procedure by July 2024.

Specifically, the onepoint consortium's proposal calls for the conversion of E2.9 bn of existing debt into equity, and E250m of new money into equity.

Nevertheless, this offer seems to us to lack ambition in terms of debt-to-equity conversion and/or new equity contribution", stresses Oddo BHF, who believes that it will not enable the group to regain a solid rating, which is necessary to regain the confidence of customers in the long term.

"As far as current shareholders are concerned, the sentence is harsh but without any real surprises, with a high level of dilution and less than 0.1% of post-restructuring capital", concludes the analyst.

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