French state bidding for piece of Atos, offers €700M

French state bidding for piece of Atos, offers €700M

June 14, 2024 at 07:42AM

The French government has offered €700 million for crucial assets of troubled IT services company Atos, as part of a restructuring plan. These assets include Advanced Computing, Mission-Critical Systems, and Cybersecurity activities, which have significant involvement in French military and state projects. Atos is evaluating the proposal and is also negotiating to sell its Worldgrid business unit.

Key Takeaways from the Meeting Notes:

1. The French government has made a non-binding confirmatory offer of €700 million for key assets of Atos, predominantly from its Big Data & Security (BDS) division. These assets are crucial for IT projects for the French military and other areas of the state.

2. Atos has accepted a bailout proposal from its largest shareholder Onepoint, aimed at restructuring the company’s financial debt, strengthening its capital structure, and providing financial liquidity to fund the business.

3. Atos is set to discuss the proposal with the French government, led by Conciliator Maître Hélène Bourbouloux, with no guarantee of successful negotiations and definitive agreement.

4. In addition to the government offer, Atos is also in negotiations to sell its Worldgrid business unit to Alten SA for €270 million.

5. The restructure deal has the support of a number of creditors, and Atos aims to finalize the financial restructuring agreement by July 2024.

6. Despite previous setbacks, such as Airbus ending discussions to acquire the BDS unit, Atos’ shares have seen a positive response to the potential acquisition, with a surge of over 16 percent.

These takeaways capture the key developments and decisions made by Atos, its acceptance of offers, and the ongoing negotiations with the French government and other potential buyers. The company aims to secure its financial future and address its debt and restructuring challenges.

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