Czech billionaire Daniel Kretinsky is engaging in exclusive negotiations to purchase Atos' loss-making legacy operations in a significant deal worth 2 billion euros ($2.20 billion). The deal is
expected to substantially reduce the scope and liabilities of the struggling French IT consulting firm.
The talks involve Kretinsky's investment vehicle, EP Equity Investment (EPEI), and coincide with Atos' plans to raise 900 million euros through a share sale, aimed at strengthening the company's balance sheet.
The prospective sale is anticipated to yield 100 million euros in cash and cut 1.9 billion euros worth of liabilities from Atos' balance sheet. The division to be sold, Tech Foundations, which generated 4.5 billion euros in revenue last year, offers infrastructure management services.
As a result of the sale, Atos will rename itself as Eviden, following the company's original plan to split into two entities. The split was designed to spin off its most valuable assets, including the cybersecurity unit BDS and supercomputers, considered strategically important by the French state.
Kretinsky, known for his wealth in the energy sector, has been actively acquiring assets in France, showing interest in various companies, from French retailer Casino to Vivendi's publishing group Editis.
Additionally, Atos announced the departure of Chief Financial Officer Nathalie Senechault, who served in the position for one year. Incoming CFO Paul Saleh, who recently assumed the role, participated in the analyst call on Tuesday morning. Photo by Unicocorn, Wikimedia commons.