Shares in Atos have experienced a sharp decline after the company announced its request for the appointment of an independent third party to aid in discussions with banks regarding debt refinancing. As of 0902 GMT, shares were trading 24% lower at EUR2.97.
Atos, a French information-technology company, revealed on Monday that it has begun talks with its banks to develop a refinancing plan for its financial debt. The company’s growing financial pressures have necessitated a strategic adjustment to ensure the repayment and refinancing of its debts.
In January, Atos stated its intention to engage in discussions with its banks in order to secure funding and refinancings, thereby minimizing uncertainties that could impact its long-term prospects. Additionally, during the same month, it revealed ongoing negotiations with French plane maker Airbus for the potential sale of its big-data and security business as part of its larger asset-sale plan.
In August, Atos announced exclusive talks regarding the sale of its Tech Foundations business to EP Equity Investments, an investment company led by Czech billionaire Daniel Kretinsky. This move aims to separate the subsidiary from Eviden and enhance the company’s capital structure.
“While discussions with EPEI on the sale of Tech Foundations continue,” Atos remarked on Monday, “there is no certainty that these negotiations will result in an agreement.”
Atos has committed to providing updates on the progress of discussions with banks, the development of a new refinancing plan, contemplated disposals, and potential changes in its capital structure which may lead to dilution for existing shareholders.
