Atos, a struggling IT group, has reached an agreement with its bondholders and banks to take over the company, potentially ending a crisis that has been ongoing for years. The deal involves a capital increase of €233 million, a contribution of €1.5 to €1.675 billion, and a debt reduction of €3.1 billion. This agreement comes just days after Onepoint, Atos’ largest shareholder, backed out of the takeover.
Atos management is hopeful that this agreement will bring an end to the saga filled with twists and turns that has been ongoing for years. With approximately 100,000 employees across 69 countries and serving as a technological pillar for the upcoming Paris Games this summer, the group aims to quickly launch operations by the beginning of July before the Olympic Games begin in Paris.
The restructuring operations are expected to be completed by the end of 2024 or the first quarter of 2025. Following the agreement, banks and bondholders will become majority shareholders of the group, holding up to 99.9% of the capital. However, current shareholders can contribute up to 25.9% of the capital to secure their stake in the company without being diluted further.
With this new agreement in place, Atos hopes to improve its financial position and achieve a “BB” credit rating by 2026 while maintaining a minimum liquidity of €1.1 billion until December 31st, 2026.
This announcement from Atos management has raised hopes that a resolution may finally be reached for this long-standing crisis within French IT industry.
In conclusion, Atos’ bondholders and banks have come together to rescue struggling IT group through an agreement that involves significant investments in capital increase and debt reduction efforts.
