Written by Tashiro Hummel
PARIS (Reuters) – Troubled French IT company Atos says it needs 1.1 billion euros ($1.18 billion) in cash to finance its operations in 2024-25, and the French government has announced that key units will be admitted that it had made a proposal to acquire part of the company.
As Atos' group finances deteriorated further, the company issued an updated estimate that it needed cash of 1.1 billion euros, almost double the 600 million euros it showed in April.
The company also confirmed that it had received a non-binding letter of intent from the French government to acquire its business, which is considered strategic and valued at between €700 million and €1 billion. That's what he said.
Athos said the due diligence phase on the proposal will begin soon, with the aim of following a non-binding offer for confirmation in June.
France's finance ministry announced on Sunday that the country was targeting three Atos businesses considered to be of strategic importance: advanced computing, critical systems and cyber products.
The heavily indebted company announced on Monday that it aims to have a 'BB' credit profile by 2026. This means a total debt reduction of 3.2 billion euros, compared to the previous target of 2.4 billion euros.
Atos, which manages data and cybersecurity for the upcoming Olympics, is in the midst of a refinancing that includes raising €1.2 billion in equity and new financing, which will be highly dilutive for existing shareholders.
(1 dollar = 0.9324 euro)
(Reporting by Tassilo Hummel; Editing by Inti Landauro)
