June 22, 2024

French IT firm Atos falls 12%, faces major share dilution after selecting rescue deal


This {photograph} taken on April 26, 2024 exhibits the headquarters of the French multinational info know-how firm ATOS in Bezons, close to Paris. (Photo by Ludovic MARIN / AFP) (Photo by LUDOVIC MARIN/AFP through Getty Images)

Ludovic Marin | Afp | Getty Images

Shares in beleaguered French IT firm Atos fell near 12% on Tuesday after the firm said it had chosen a rescue deal, which is about to end in a major dilution of current shareholders.

Shares have been final down 11.97% as of 9:52 a.m. London time.

Atos stated it could go forward with a proposal by major shareholder David Layani, whose IT firm Onepoint held round 11% of Atos’ share capital and voting rights as of December 2023 in keeping with its website. Atos was additionally contemplating a rival supply from Czech billionaire Daniel Kretinsky.

The deal will however result in a “massive dilution” of current shareholders, who’re set to carry lower than 0.1% of share capital as soon as it’s accomplished, Atos stated.

Atos stated Layani’s deal included a stronger capital construction and supplied the firm with sufficient monetary liquidity to remain in enterprise.

“The proposal submitted by the Onepoint consortium also has the support of a large number of Atos’ financial creditors and thus gives greater confidence that a definitive financial restructuring agreement will be reached,” the corporate stated.

Layani on Tuesday stated the deal companions wished to enhance Atos’ steadiness sheet and make sure that the corporate turns into a major worldwide participant within the tech sector, Reuters reported.

Layani’s deal is fronted by Onepoint, in addition to funding firm Butler Industries, IT firm Econocom and a few of Atos’ monetary collectors. It is anticipated to be applied by July.

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Atos

Atos is managing knowledge and cybersecurity for the Paris 2024 Olympics and holds varied delicate contracts with the French navy and different authorities.

It has been dealing with mounting monetary troubles, together with hovering debt, for a while, with its net debt standing at 3.9 billion euros ($4.2 billion) on the finish of the primary quarter.

Atos has been in discussions about varied offers all through its monetary hardships, with a number of major firms together with Airbus exhibiting curiosity. Earlier this yr Atos additionally stated it had acquired a letter of intent from the French government to acquire elements of its enterprise.



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