Casino - Comments

Czech billionaire Daniel Kretinsky, via his Vesa vehicle purchased additional shares on 26th November to cross above the 5% threshold in voting share (6.8% of the total outstanding shares). But to be put into context, in November last year, Vesa owned 10.16% of the outstanding shares, a position built up over the previous 6 months. During the first half of 2021, Vesa was selling down its stake. The most recent purchase, of c. 2m shares or €40m investment, has resulted in Vesa crossing the 5% threshold.

When Vesa reached 10% last year, they declared they were not working in consort with anyone, was financed by equity and credit facility and that Vesa was supportive of the disposal strategy being undertaken by Casino. That declaration has expired but we believe it is still applicable, and therefore we are not reading too much into the filing. It is likely to provide some support to the share price but does further reduce the free float in Casino shares potentially leaving them more volatile.