Atos, a French tech group, has announced that it is in exclusive negotiations to sell its Worldgrid unit to engineering consulting group Alten for an enterprise value of 270 million euros. The Worldgrid business provides consulting and engineering services to energy and utility companies and has close to 1,100 employees. Atos stated that the proposed deal would ensure full continuity of service for the units’ clients and employees.
Earlier on the same day, Atos made a decision to accept an offer to restructure its debt led by anchor investor David Layani, rather than a rival proposal from Czech billionaire Daniel Kretinsky. Layani’s proposal aims to keep Atos under French control and preserve jobs and assets, despite the urgent need to restructure the group’s 4.8 billion-euro debt. The plan, which would result in massive dilution of existing shareholders, also prioritizes maintaining the company’s stability.
The decision to sell the Worldgrid unit is part of Atos’ efforts to alleviate its debt burden and streamline its operations. By entering into exclusive negotiations with Alten, Atos aims to secure a deal that will benefit both the company and its employees. The sale of the Worldgrid unit will allow Atos to focus on its core business areas and potentially generate much-needed funds to address its debt concerns.
David Layani’s proposal for restructuring Atos’ debt focuses on preserving French control over the company and protecting jobs and assets. Despite the significant dilution of existing shareholders, the plan is intended to ensure the stability and future viability of Atos. By choosing this offer over a rival proposal, Atos is signaling its commitment to maintaining its French identity and safeguarding the interests of its stakeholders.
The enterprise value of 270 million euros for the sale of the Worldgrid unit represents a significant opportunity for both Atos and Alten. The acquisition of the Worldgrid business will expand Alten’s capabilities in consulting and engineering services for energy and utility companies, while providing Atos with funds to address its debt situation. The proposed deal is designed to ensure a smooth transition for clients and employees of the Worldgrid unit, allowing for continued quality service delivery.
Overall, the sale of the Worldgrid unit and the decision to accept David Layani’s offer for debt restructuring represent strategic moves by Atos to address its financial challenges. By focusing on streamlining operations, generating funds through asset sales, and restructuring its debt, Atos aims to strengthen its financial position and ensure its long-term sustainability. The company’s commitment to preserving French control and prioritizing jobs and assets underscores its dedication to maintaining stability and protecting the interests of its stakeholders.
