PARIS, Nov 23 (Reuters) – Elior (ELIOR.PA) is discussing a attainable tie-up with its largest shareholder Derichebourg (DBG.PA) because the French caterer appears to shore up its steadiness sheet amid ongoing high-inflation setting, Bloomberg Information reported on Wednesday.
An Elior spokesperson declined to touch upon the Bloomberg Information report whereas officers at Derichebourg couldn’t instantly be reached for remark.
Elior is near finalizing its strategic choices within the coming weeks, the group’s Chairman and Chief Govt Bernard Gault had stated earlier on Wednesday, as Elior posted its annual results.
“The board of administrators is finalizing analyzing numerous eventualities with the purpose to retain the one that can optimize the Group’s strategic orientations and enhance its monetary place,” Gault stated in a press release.
The proposed mixture would see Derichebourg switch belongings to Elior in change for a rise to its roughly 24% stake, the report stated citing individuals accustomed to the matter.
Earlier this yr, French steel scrap recycler Derichebourg elevated its stake in Elior, to 19.6%, making it the catering group’s largest shareholder.
Elior, Europe’s third largest contract caterer, can be exploring different choices, together with a capital improve or sale of items in international locations reminiscent of Italy and the UK, the Bloomberg report stated, including that no remaining determination has been reached and the plans may but change.
Elior’s largest investor, Derichebourg, has no plans to make a proposal for your entire firm if the tie-up plan proceeds, in response to the report.
Elior Group on Wednesday reported a 3rd annual core loss because the begin of the COVID-19 pandemic, weighed down by excessive inflation and tough contract renegotiations in its residence market.
Reporting by Sudip Kar-Gupta, Dagmarah Mackos and Mrinmay Dey; Modifying by Leslie Adler and Sandra Maler
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