This planned sales come on top existing plans to sell non-core assets worth 2.5 billion euros by the first quarter of 2020.
On Tuesday, French supermarket retailer Casino stated, it plans on cutting its debt while improving its financial performance through a $2.2 billion (2 billion euros) sales of assets.
Casino has been struggling to improve its profits in a tough business climate in France, raising concerns over its ability to generate enough cash to pay off the debt of parent company Rallye.
“The board of directors has validated the arbitration of assets whose disposal would be a source of value creation,” said Casino in a statement.
It went on to add, “As a result, new asset disposals for a target amount of 2 billion euros have been identified, with this second phase of the disposal plan to be completed by the end of Q1, 2021.”
The plan to sell of assets come on top of Casino’s existing plan to sell off 2.5 billion euros of assets by the first quarter of 2020. To that end, Casino has already signed agreements to sell assets worth 2.1 billion euros.
So far the sales have mainly taken the form of the disposal of non-core assets such as supermarkets or real estate, which have been sold to private equity investors.
Earlier this year in May, Jean-Charles Naouri, Casino’s Chairman and Chief Executive placed Rallye, the holding company, under protection from creditors.
As of the end of June, Casino’s net debts stood at 4.7 billion euros.
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