Casino - LATAM progress ahead of Thursday
Dear All,
Please refer to our unchanged analysis here.
GPA, Casino’s subsidiary in Latin America, has received approval to separate the cash and carry business, Assai, with a separate listing. This should become free to trade from March 1st. This is a further step to increase the liquidity and marketability of the LATAM structure. It is likely to increase the market value of Casino’s LATAM holdings, we do not envisage any realisation in the short term for these assets. If there were interested parties in the cash and carry business, a straight sale rather than a listing would have been instigated. Note, the RCF and Term Loan B enjoys guarantees from the Segisor entity, which is the holding company that holds the LATAM shares.
Casino releases their FY20 numbers on Thursday morning, where our focus will be on the underlying French asset. Away from its various non-core assets, the French retail business fails to generate any material FCF.
Tomás
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