PARIS, Nov 23 (Reuters) – Elior (ELIOR.PA) is discussing a doable tie-up with its largest shareholder Derichebourg (DBG.PA) because the French caterer seems to be to shore up its steadiness sheet amid ongoing high-inflation atmosphere, 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 Government Bernard Gault had mentioned earlier on Wednesday, as Elior posted its annual outcomes.
“The board of administrators is finalizing analyzing varied eventualities with the purpose to retain the one that may optimize the Group’s strategic orientations and enhance its monetary place,” Gault mentioned in an announcement.
The proposed mixture would see Derichebourg switch belongings to Elior in change for a rise to its roughly 24% stake, the report mentioned citing individuals aware of the matter.
Earlier this 12 months, French metallic 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 also be exploring different choices, together with a capital enhance or sale of items in nations resembling Italy and the UK, the Bloomberg report mentioned, including that no last determination has been reached and the plans might but change.
Elior’s largest investor, Derichebourg, has no plans to make a suggestion for the whole firm if the tie-up plan proceeds, in accordance with the report.
Elior Group on Wednesday reported a 3rd annual core loss for the reason that begin of the COVID-19 pandemic, weighed down by excessive inflation and tough contract renegotiations in its house market.
Reporting by Sudip Kar-Gupta, Dagmarah Mackos and Mrinmay Dey; Enhancing by Leslie Adler and Sandra Maler
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