O Casino Guichard-PerrachonFrench retail group that controls Grupo Sugarloaf Mountain (PCAR3), saw its shares melt this Monday (18). At around 9:20 am (Brasília time), Casino shares fell 4.2% on the French market, after starting the day with a drop of 4.8%.
The sharp drop on the Paris Stock Exchange is due to the news that the Rallyholding company behind Casinoand its CEO were fined after publishing false figures on their liquidity position.
Rallye holds a 51.7% share, according to the retailer’s website.
Casino Holding receives fine of 25 million euros
At the end of last week, the French market regulatory body made public that, on September 7th, it had decided to fine the Rally at 25 million euros and its CEO, Franck Hattab, at 1 million euros. Reason: the disclosure of false or misleading information about the group’s financial position on 11 occasions between March 2018 and May 2019, including the 2017 and 2018 Rallye annual results.
According to the regulator, in accordance with clauses and guarantees in financing contracts, Rallye’s liquidity situation depended on the price of Casino actions (EPA: CO), which was much more volatile than the holding company’s financial statements had suggested.
O Casino, which is facing serious financial difficulties, has been negotiating capital injections with potential investors for months. Later this month, the Group Sugarloaf Mountain (PCAR3) announced that the French group proposed to begin negotiations to purchase the indirect shareholding held by the retailer in the e-commerce company Cnova. Currently, Pão de Açúcar holds an indirect equity stake of 34% in the company’s share capital.
With information from Dow Jones Newswires and Estadão Conteúdo.
The post first appeared on www.suno.com.br