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French technology group Atos said Czech billionaire Daniel Křetínský and David Layanis Onepoint have made offers to save the heavily indebted group as it struggles to complete a restructuring deal this month.
The Paris-listed group, which must repay 3.65 billion euros in debt by the end of next year, said on Monday it had received offers from four parties.
Křetínský, which previously failed in an attempt to buy the oldest part of Atos, which focuses on managing IT systems, has teamed up with London-based hedge fund Attestor for its new offer.
Onepoint, Atos’ largest shareholder, put forward a separate proposal backed by investment firm Butler Industries. US private equity firm Bain also came forward, but Atos decided not to continue talks because the offer did not meet its objectives. The fourth offer came from a consortium of bondholders and bank creditors of the IT company.
“Any solution will likely require radical changes to the company’s capital structure and a significant issuance of new equity securities, which will result in massive dilution to existing shareholders,” Atos said in a statement.
The group’s situation has worsened this year as credit agencies have repeatedly downgraded its rating. While the share price fell by more than 90 percent in the last three years, the company’s market value was only 250 million euros. Its shares rose as much as 12 percent in early trading in Paris on Monday before giving back gains.
In a sign of the deteriorating situation, Atos recently increased its forecast financing needs to stay afloat until 2025 to 1.7 billion euros. The company said on Monday that a 100 million euro deal had been agreed with bondholders for short-term financing, while talks are underway with banks and the French government to secure an additional 350 million euros.
Discussions with the French government about taking control of assets deemed strategically important are also continuing, Atos said. France’s Finance Minister Bruno Le Maire said earlier the government had made an offer to buy key assets worth up to 1 billion euros.
The government wants to buy three parts of Atos: quantum computing supercomputers used by the French army for the country’s nuclear weapons program; secure communications technology also used by the military; and certain cybersecurity resources. The company is expected to provide cybersecurity services for the Paris Olympics this summer.
Until recently, the government stayed away from the turmoil at Atos, chaired by former UniCredit chief Jean Pierre Mustier, although several attempts to restructure the company and sell assets failed.
However, with the company’s financial situation deteriorating, the government stepped in to provide a short-term loan and create a “golden share” that could be applied to the company’s strategic assets, allowing ministers to approve their potential sale To block.