The French retailer Casino Guichard Perrachon SA stated last week that they have sold approximately 9.8% of their stake
The French retailer Casino Guichard Perrachon SA stated last week that they have sold approximately 9.8% of their stake in the commercial real estate company Mercialys SA that represents a good portion of money (EUR138 million) in cash for proceeds. This entire transaction was done through a whole equity swap with the Credit Agriole Corporate Company and the Investment Bank who is a unit of Credit Agricole SA. They are hoping that this will boost their sales, and decrease their debt in the end. The sale of this section of the property will allow them to rid themselves of an extra share.
"This transaction, which follows the disposal to bring Casino's stake in Mercialys down to below 50% on April 25, enables an optimal reclassification of these stocks," The casino said in a statement. They also went on to note that it will remain a key partner of Mercialys, where they now are able to hold over a 40 percent stake in the company. The share will pay out on the percentage that is owned, which will bring in more cash for the holder. This is all part of a new strategy, and Mercialys actually made their first exceptional dividend distribution later in April. The casino received EUR532 million for this one transaction.
This brought the total amount of cash dividends that they have received from Mercialys up to EURO670 million.This puts their earnings high up on the pole, and allows the company to feel financially free. Not only are they able to get what they need from the company, but they can be sure to make the most from the dividends at the end of the day. Having close to half the percentage of stocks in the company means a large payout for only having to hold the stock in the company. Making their money back has never been easier. Being a part of this company allows the people to get the most out of the stocks and bonds that they hold with other companies; even if they are not casino related companies. This provides the company with the options of holding shares in other companies, not related to their own gaming business in order to run the gaming business from the proceeds of the shares from the other companies.