French IT organization Atos falls 12%, faces important share dilution after choosing rescue offer

French IT organization Atos falls 12%, faces important share dilution after choosing rescue offer


This photograph taken on April 26, 2024 reveals the headquarters of the French multinational facts technologies organization ATOS in Bezons, in the vicinity of Paris. (Photograph by Ludovic MARIN / AFP) (Picture by LUDOVIC MARIN/AFP via Getty Images)

Ludovic Marin | Afp | Getty Images

Shares in beleaguered French IT organization Atos fell shut to 12% on Tuesday following the organization said it experienced selected a rescue deal, which is set to result in a major dilution of current shareholders.

Shares had been past down 11.97% as of 9:52 a.m. London time.

Atos mentioned it would go ahead with a proposal by big shareholder David Layani, whose IT company Onepoint held around 11% of Atos’ share capital and voting rights as of December 2023 in accordance to its web site. Atos was also contemplating a rival supply from Czech billionaire Daniel Kretinsky.

The offer will nevertheless guide to a “substantial dilution” of present shareholders, who are set to keep a lot less than .1% of share capital after it is accomplished, Atos mentioned.

Atos mentioned Layani’s offer bundled a stronger money structure and furnished the organization with ample economical liquidity to stay in company.

“The proposal submitted by the Onepoint consortium also has the help of a substantial amount of Atos’ financial creditors and therefore offers bigger self-confidence that a definitive money restructuring arrangement will be achieved,” the corporation stated.

Layani on Tuesday mentioned the offer companions wished to improve Atos’ stability sheet and make certain that the corporation results in being a main intercontinental participant in the tech sector, Reuters documented.

Layani’s offer is fronted by Onepoint, as effectively as expenditure company Butler Industries, IT business Econocom and some of Atos’ fiscal lenders. It is predicted to be implemented by July.

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Atos

Atos is managing information and cybersecurity for the Paris 2024 Olympics and retains many sensitive contracts with the French armed service and other authorities.

It has been experiencing mounting fiscal difficulties, including soaring personal debt, for some time, with its internet credit card debt standing at 3.9 billion euros ($4.2 billion) at the stop of the 1st quarter.

Atos has been in conversations about many bargains during its monetary hardships, with a number of big companies such as Airbus displaying desire. Earlier this calendar year Atos also explained it had received a letter of intent from the French governing administration to purchase pieces of its organization.



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