This photo, taken on April 26, 2024, shows the headquarters of the French multinational information technology company ATOS in Bezons, near Paris. (Photo by Ludovic MARIN / AFP) (Photo by LUDOVIC MARIN/AFP via Getty Images)
Ludovic Marin | Episode | Getty Images
Shares of beleaguered French IT company Atos fell nearly 12% on Tuesday after the company said it had opted for a rescue deal that will result in major dilution to existing shareholders.
Shares were last down 11.97% as of 9:52 a.m. London time.
Atos said it would go ahead with a proposal from major shareholder David Layani, whose IT company Onepoint held about 11% of Atos’ share capital and voting rights as of December 2023, according to its website. Atos was also considering a rival bid from Czech billionaire Daniel Kretinsky.
The deal will nevertheless lead to “massive dilution” for existing shareholders, who will likely own less than 0.1% of the share capital upon completion, Atos said.
Atos said the deal with Layani included a stronger capital structure and provided the company with sufficient financial liquidity to remain in business.
“The Onepoint consortium’s proposal also has the support of a large number of Atos’ financial creditors, providing greater confidence that a final financial restructuring agreement will be reached,” the company said.
Layani’s deal is led by Onepoint, as well as investment firm Butler Industries, IT firm Econocom and some of Atos’ financial creditors. This is expected to be implemented in July.
Atos manages data and cybersecurity for the 2024 Olympic Games in Paris and has several sensitive contracts with the French military and other authorities.
The country has long faced mounting financial problems, including skyrocketing debt, with net debt reaching 3.9 billion euros ($4.2 billion) at the end of the first quarter.