Czech billionaire launches takeover of French retailer Fnac Darty

PARIS — Czech businessman Daniel Kretinsky has launched a takeover bid for French-based electronics and appliance retailer Fnac Darty — a deal valuing the struggling group at around 1 billion euros ($1.18 billion), the company said on Monday.

Kretinsky is already Fnac Darty’s largest shareholder, with 28.5 percent, and has offered 36 euros a share with the aim of securing a majority stake of over 50 percent.

“The board of directors of Fnac Darty unanimously welcomed the offer,” the company said in a statement.

Czech businessman Daniel Kretinsky poses during a photo session on Jan. 22, 2020, in Paris. AFP PHOTO

The firm’s other main shareholder — Germany retail conglomerate Ceconomy, which holds around 20 percent — is currently being acquired by the Chinese e-commerce giant JD.com.

That move has prompted the French finance ministry to intervene with a demand that neither Ceconomy nor JD.com increase their Fnac Darty stakes.

Ceconomy and JD.com did not immediately react to Kretinsky’s bid.

Fnac Darty has over 1,500 stores across Europe and in some African countries, with preliminary revenue of 10.3 billion euros last year, up 0.7 percent year on year.

But it has faced fierce online competition for electronics.

That has prompted it to embark on a years-long restructuring project lasting through to 2030 that aims to boost profitability after heavy losses stemming from the Covid-19 pandemic.

Current operating income was largely flat last year at 203 million euros, while free cash flow fell to 145 million euros from 210 million.

The Kretinsky offer sent Fnac Darty shares surging on the Paris stock market on Monday, rising 17 percent to 35.45 euros.

Kretinsky made his fortune in the energy sector before increasing investments across various countries and sectors via his EP Group.

This year, he was named chairman of Britain’s Royal Mail after acquiring International Distribution Services.

He has also made substantial investments in French media groups, including Elle magazine and the newspapers Le Monde and Liberation.