Shares in Atos soared on Tuesday, experiencing a partial recovery from significant losses over the past two sessions. The French information-technology company revealed that it is currently engaged in exclusive negotiations to sell its Tech Foundations business. Additionally, Atos announced the launch of a capital increase at a premium and the appointment of a new chief financial officer.
At the time of writing (0834 GMT), Atos shares had surged by 11.8% to reach EUR10.57. The stock had previously plummeted by more than a third of its value due to concerns raised by investors regarding cash flow and the costs associated with the company's plan to divide itself into two entities.
The potential sale of Tech Foundations to EP Equity Investments is part of a larger strategy by Atos to enhance its capital structure. If approved by both shareholders and regulators, the subsidiary will be separated from Eviden, its data business. Atos intends to change its name to Eviden, while Tech Foundations will retain the Atos brand as its sole owner.
Upon completion, the transaction is expected to be finalized by the first quarter of 2024. Atos will receive EUR100 million in cash and transfer EUR1.9 billion of debt as part of the deal. To support its plans, the company has organized capital increases totaling EUR900 million, with EPEI committed to investing EUR217.5 million in the new entity.
Atos Plans Strategic Investments and Appoints New CFO
Atos, a leading global technology company, has outlined its latest strategic moves, including significant investments and leadership changes. The company is set to invest EUR180 million through a reserved capital increase, acquiring a 7.5% share in the company. Additionally, Atos will raise an additional EUR37.5 million as part of a rights issue for existing shareholders. The price of the reserved capital increase offers a substantial premium compared to Atos's recent closing price.
In line with its separation plan, Atos has announced the appointment of Paul Saleh as Chief Financial Officer (CFO), effective immediately. Saleh brings valuable expertise from his previous role as Chief Executive of Gainwell Technologies. He will succeed Nathalie Senechault, who will be departing from the firm.
These recent developments contribute to Atos's progress towards achieving a full split by the end of the year. The company has been actively streamlining its operations and has successfully separated its internal functions into two distinct entities.
Furthermore, Atos is currently engaged in exclusive negotiations with Schneider Electric for the sale of its EcoAct climate consulting business. This deal forms part of Atos's EUR700 million program to divest noncore assets, initiated in the previous year. Notably, Atos has identified additional opportunities to optimize its portfolio, potentially increasing the value of the asset-sale program by an additional EUR400 million.
It is worth mentioning that Atos's pursuit of a major minority stakeholder in Eviden did not materialize, as Airbus decided to withdraw from discussions earlier this year. Despite this setback, Atos remains focused on its strategic objectives.