Sopra Steria plans to acquire 65.26 percent stake in CS GROUP

By Sakina Raj  | Date: 2022-07-30

Sopra Steria plans to acquire 65.26 percent stake in CS GROUP

European consulting company Sopra Steria is reportedly planning to acquire 65.26 percent of the share capital of CS GROUP at the price of USD 11.77 (€11.50) per share.

Sopra will acquire all of CS GROUP’s shares held by Yazid Sabeg, the company’s Chairman of the Board of Directors, CEO Eric Blanc-Garin, and joint holding firm Duna & Cie, accounting for 29.73% of CS GROUP’s share capital i.e., the main block.

Along with this, CIRA Holding and Novidy’s founders have committed Sopra Steria to sell the CS GROUP shares owned by them i.e., around 29.15 percent and 6.38 percent, respectively in the share capital of the company.

This represents a total acquisition of the main block of 65.26 percent of CS GROUP’s share capital. This operation would bring the total share capital of Sopra Steria to 75.06% of the CS GROUP capital after considering the 9.80% already owned by the Paris-based consulting firm.

This stake acquisition would result in Sopra filing a simplified public tender offer with the Autorité des Marchés Financiers in the first quarter of next year. The transaction for 100 percent of the share capital would cost USD 289.2 million (€282.5 million) without considering the USD 3.27 million (€3.2 million) in net debt.

This consolidation would augment earnings per share by 1 percent in Q1 of 2023. In 2024, considering 70% of the operational, commercial, and tax synergies, earnings improvement would be 4 percent.

The Boards of Directors of CS GROUP and Sopra Steria Group have already been consulted about this transaction. They have unanimously reacted in favor of the deal, without any detriment to a public offer documentation review when it becomes available.

This approval will also not affect the reasoned opinion to be drawn up by the Board of Directors on the public tender offer after obtaining the opinion of the independent expert during the completion of the acquisition of the main block as well as other blocks.

Source credit:

https://www.businesswire.com/news/home/20220727006232/en/Sopra-Steria-Announces-Plans-to-Acquire-CS-GROUP

About Author

Sakina Raj     aeresearch.net

Sakina Raj

Armed with a degree in English Literature, Sakina chose to explore the world of content writing and pursue it as a career. Sakina has been playing with words for over five years now and currently pens down articles relating to diverse domains for BonafideNews and vari...

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