Jaraa'idJaraa'id
Notification Show More
Latest News
US label maker breaks drought in junk bond issuance since SVB failure
Business
International friendly: Kevin De Bruyne and Romelu Lukaku on target as Belgium edge out Germany in five-goal thriller
Sports
Biden asks after Nashville shooting: Why do we ‘allow these weapons of war?’
United States
Biden: planning underway for Nashville visit after ‘sick’ school shooting
United States
Analysis: Pressure builds on Egypt to devalue currency further
Africa
Aa
  • Home
  • Local News
  • Africa
  • United States
  • Europe
  • Asia
  • Sports
  • Videos
  • Live Score
  • More
    • Business
    • Market Data
      • Stocks
      • Commodities
      • Cryptocurrency
      • Forex
    • Weather
Reading: Retailer Casino probed over alleged financial manipulation and insider trading
Share
Aa
Jaraa'idJaraa'id
  • Somalia
  • Africa
  • United States
  • Europe
  • Asia
  • Business
  • Sports
  • Videos
Search
  • Home
  • Local News
  • Videos
  • World
    • Africa
    • United States
    • Europe
    • Asia
  • Market Data
    • Stocks
    • Commodities
    • Cryptocurrency
    • Forex
  • More
    • Sports
    • Business
    • Weather
    • Live Score
Have an existing account? Sign In
Follow US
Jaraa'id > Business > Retailer Casino probed over alleged financial manipulation and insider trading
Business

Retailer Casino probed over alleged financial manipulation and insider trading

News Room
Last updated: 2023/03/10 at 4:24 PM
News Room Published March 10, 2023
Share
SHARE

France’s financial prosecutor revealed it has been investigating food retail group Casino for financial manipulation and insider trading that allegedly took place in 2018 and 2019 when the group was locked in a battle with short sellers while struggling under heavy debts.

The prosecutor’s office said in a statement that the preliminary probe, which was opened in 2020 following a report from the AMF markets regulator, was looking into potential charges related to “stock price manipulation” carried out by a group of people, as well as corruption and “insider trading”. 

The details of the investigation came on the same day Casino owner Jean-Charles Naouri unveiled a deal to combine the group’s French supermarket unit with Teract, a smaller food retailer. The two sides are in exclusive talks, which if finalised would provide a financial lifeline to help Naouri stave off creditors and restructure his heavily indebted holdings.

Casino declined to comment on the investigation. The retailer also reported a full-year loss of €316mn on Friday and higher debts than expected in its core French operation.

An executive with a penchant for complex financial engineering, 74-year-old Naouri constructed a web of holding companies through which he controls Casino. However, he overburdened them with debt and was subsequently forced to place four of the holdings that sit atop Casino — Rallye, Euris, Finatis, and Foncière Euris — into the French equivalent of bankruptcy protection in 2019. 

As a multiyear reprieve granted by a French court in the debt restructuring process comes to an end, billions of dollars of repayments will come due in 2024 and 2025. Credit analysts have questioned if Rallye can meet its payments in 2025, while Casino has been selling assets in an effort to cover its obligations. 

The period the prosecutor is examining covers the years before Casino’s parent companies filed for insolvency protection, during which the company’s communications to the market came under intense scrutiny. In one instance Casino and its rival Carrefour issued contradictory statements on whether they were exploring merger talks.

In addition to the long-running prosecutor’s probe, two minority shareholders in Casino — Xavier Kemlin, a descendant of the company’s founder, and Pierre-Henri Leroy, founder of proxy advisory Proxinvest — filed additional legal complaints against the company in February.

One of them, which alleges that the process by which Rallye entered insolvency protection in 2019 was fraudulent, has been referred to the Paris prosecutor’s office. A second complaint has not yet been received by investigators, the office said. 

In response, Casino said Kemlin and Leroy’s allegations were “perfectly inaccurate and slanderous” adding that the group reserved the right to take legal action “as we did in 2018 against the same individuals, in reaction to the same allegations’‘. 

Casino’s financial results published on Friday showed a net loss of €316mn for 2022, an improvement on the year before, but total debt rose to €6.4bn — up 8 per cent year on year.

Net debt in the core French retail operation hit €4.5bn for the year, exceeding analyst expectations, and putting further pressure on cash flow following a sharp decline in sales volumes in the last months of the year. 

If the deal with Teract comes off, Casino will spin out its French retail assets such as Monoprix and Franprix and combine them with Teract, a listed company formed last year in a Spac deal involving Invivo, a farmers’ co-operative, and backed by several big names in French business. The new venture will get at €500mn in equity, but no details were given on valuations or where debt will sit in the new entities.

The retail group said it would focus on cutting costs, reducing inventory and paying down its debts in 2023, and that it was on track to complete its promised plan to sell €4.5bn in assets by the year’s end. 

Casino’s share price is down by a quarter in the past month after shedding 5 per cent on Friday morning.

Read the full article here

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
I have read and agree to the terms & conditions
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
News Room March 10, 2023
Share this Article
Facebook Twitter Email Print
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular News
Business

US label maker breaks drought in junk bond issuance since SVB failure

News Room News Room March 29, 2023
International friendly: Kevin De Bruyne and Romelu Lukaku on target as Belgium edge out Germany in five-goal thriller
Biden asks after Nashville shooting: Why do we ‘allow these weapons of war?’
Biden: planning underway for Nashville visit after ‘sick’ school shooting
Analysis: Pressure builds on Egypt to devalue currency further
Live news: Canada proposes tax credits to boost critical minerals production
Ollie Hassell-Collins to join Leicester Tigers as Mike Brown signs new contract at Premiership side
McCarthy demands meeting with Biden. White House: ‘Show us your budget.’
- Advertisement -
Ad imageAd image

You Might also Like

Business

US label maker breaks drought in junk bond issuance since SVB failure

March 29, 2023
Business

Live news: Canada proposes tax credits to boost critical minerals production

March 28, 2023
Business

Italy at odds with Brussels over using EU money for football stadium

March 28, 2023
Business

JPMorgan’s Jamie Dimon to be deposed in Epstein lawsuits

March 28, 2023
  • Somalia
  • Africa
  • United States
  • Europe
  • Asia
  • Cryptocurrency
  • Forex
  • Stock Market

About US

Jaraa'id is your one-stop website for the latest global and local news and updates, follow us now to get the news that matters to you.
Quick Link
  • Privacy Policy
  • Terms of use
  • Press ReleaseSubmit
  • Advertise
  • Contact
Top Sections
  • Business
  • Sports
  • Videos
  • Market DataLive
  • Weather

Subscribe US

Subscribe to our newsletter to get our Latest articles instantly!

I have read and agree to the terms & conditions

2023 © Jaraa'id. All Rights Reserved.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?