Atos to Continue Talks With French State Over Assets Sale — 2nd Update

By Najat Kantouar

Atos said it made a new proposal to sell its computing and cybersecurity assets to the French state after an initial round of talks ended without an agreement.

The beleaguered French IT group received a 700 million-euro ($768.4 million) offer from Paris back in June for its advanced computing, mission-critical systems and cybersecurity activities within Atos's big data and security arm, underscoring efforts from France to prevent the collapse of a company that offers services to governments, homeland security and defense clients.

Atos said Monday that the offer expired on Oct. 4 without an agreement and that it sent a new proposal to the French government to continue talks as it undergoes a financial restructuring aimed at restoring profitability.

The group has seen years of profit warnings and lost several chief executives since 2021, while its debt pile has grown. It attempted to sell parts of its business to the likes of Airbus and Czech billionaire Daniel Kretinsky to gain much-needed liquidity, but with no success.

Atos reached a deal in July with banks and bondholders on the terms of a financial restructuring after separate rescue talks with shareholders, including Onepoint, fell apart in June. In September, the company's shareholders and creditors voted in favor of a rescue package, including an injection of funds as well as the conversion of debt into shares.

Atos said any potential sale to the French state would be subject to approval by a commercial court in Nanterre, to which the company's rescue plan will be submitted on Oct. 15.

Write to Najat Kantouar at najat.kantouar@wsj.com

(END) Dow Jones Newswires

October 07, 2024 07:51 ET (11:51 GMT)

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