Source: AFP
Struggling French technology group Atos, an Olympic partner and key French defense contractor, said on Tuesday it had opted for a takeover bid from a consortium led by top shareholder Onepoint.
Atos — which runs supercomputers for France’s nuclear deterrent, has contracts with the French military and is the IT partner for the Paris Olympics — is reeling under nearly five billion euros ($5.4 billion) in debt.
The group said its board chose the financial restructuring proposal made by French businessman David Layani’s digital consultancy Onepoint and partners Butler Industries and Econocom over a bid led by Czech billionaire Daniel Kretinsky.
“Today is an important milestone in our financial restructuring process,” said Atos chairman Jean-Pierre Mustier.
“A solution has emerged, which aligns with the interest of the Company’s shareholders, especially our employees and customers,” he said.
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The company said Onepoint’s offer had “the support of a large number of Atos’ financial creditors and thus gives greater confidence in reaching a definitive financial restructuring agreement”.
The company said it will work with the Onepoint consortium to reach a definitive financial restructuring agreement that will be implemented by July.
The Paris Olympics begin on July 26. Atos has insisted its financial problems will not disrupt its operations during the Games, for which it will provide real-time results and manage more than 300,000 credentials.
Prime government contractor
Atos is also a key government contractor and the French state has said it will acquire strategically important corporate businesses, including advanced computing, “mission-critical systems” and cyber security products.
Economy Minister Bruno Le Maire said the move would prevent such strategic activities from “falling into the ownership of foreign actors”.
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The government has also granted a €50 million loan to the company.
Onepoint’s financial restructuring deal includes raising €250m of new equity in Atos, issuing €1.5bn in new debt and converting €2.9bn of debt into equity.
“The proposal submitted by the Onepoint consortium is broadly consistent with the key financial parameters outlined by the Company in April,” said Atos chief executive Paul Saleh.
“It will adequately fund the business and enable Atos to extend its market leadership and continue to provide excellent services and solutions to its customers,” he added.
Source: AFP
