Atos SE Initiates Capital Increases to Support Creditors

Atos SE Unveils Major Capital Increases Plan

Atos SE takes a significant step today with the announcement of its three reserved capital increases aimed at supporting creditors as part of its Accelerated Safeguard Plan. This plan is crucial for revitalizing Atos’ financial standing and securing its future viability. The initiative involves the issuance of over 115 billion New Shares, reserved for Non-Participating and Participating Creditors, enhancing their stake in the company while addressing its debt burden.

Details of Capital Increases

The first component of this arrangement includes a subscription offering where up to 27 billion New Shares can be subscribed at €0.0663 each, aimed exclusively at Non-Participating Creditors. The total gross value of this segment will reach approximately €1.8 billion, providing much-needed liquidity to the company. Similarly, for Participating Creditors, the second component allows for the issuance of up to nearly 85 billion New Shares at a subscription price of €0.0132 corresponding to a gross amount of about €1.12 billion.

Additional Reservation for Participating Creditors

Furthermore, the plan includes an additional capital increase reserved for Participating Creditors, where around 3.8 billion New Shares will be available at €0.0037. Together, these capital increases represent a decisive move by Atos toward addressing its debt load and fostering long-term stability.

Scheduled Timelines and Implications

Settlement and delivery of the New Shares are set for December 18. This marked and well-coordinated strategy follows the company's earlier capital increase of €233 million, which indicates its ongoing commitment to enhancing its financial stability. The completion of these capital increases will contribute to a substantial dilution of existing shareholder stakes, a key factor that may affect the market perception of Atos.

Effects on Existing Shareholders

As Atos embarks on this ambitious financial restructuring, current shareholders could face significant ownership dilution. For instance, a hypothetical investor holding 1% of the company's shares may see their ownership drop to around 0.35% after the exercise of these measures. The expected influx of new shares can lead to increased volatility in stock prices as new shares may hit the market briskly.

Execution of the Accelerated Safeguard Plan

Atos commenced its accelerated safeguard proceedings, which received approval from a specialized court. This plan not only facilitates the conversion of about €2.9 billion in financial debts into equity but also encompasses the issuance of warrants allowing creditors to acquire new shares, further consolidating their investment. Ultimately, the company is making strategic moves to stabilize its operational capabilities amid ongoing market fluctuations.

Atos Overview and Future Plans

Atos is recognized as a global leader in digital transformation with a workforce of around 82,000 and an annual revenue nearing €10 billion. The firm specializes in cybersecurity, cloud solutions, and high-performance computing, along with tailored services across diverse industries. With a commitment to achieving decarbonization goals, Atos serves clients in 69 countries, emphasizing a secure and sustainable digital future.

Investor Relations and Contact Information

Interested stakeholders can obtain more information through at Atos’ investor relations contacts, including David Pierre-Kahn at investors@atos.net or Sofiane El Amri at investors@atos.net. For individual shareholders, a dedicated line stands at 0805 65 00 75 for queries. Additionally, press inquiries can be directed to globalprteam@atos.net.

Frequently Asked Questions

What are the key goals of Atos' recent capital increases?

The capital increases aim to support creditors, reduce financial debts, and enhance Atos' overall financial stability.

How will these capital increases impact existing shareholders?

Existing shareholders may experience significant dilution in their ownership percentage as new shares are issued to creditors.

What is the scheduled date for the completion of these capital increases?

The settlement and delivery of the new shares are expected to occur on December 18.

How does Atos plan to use the proceeds from these capital increases?

The proceeds will primarily be used to finance operational needs and reduce financial indebtedness.

Where can investors find more information about Atos' financial strategy?

Investors can access detailed information on Atos' financial strategy through their official website and investor relations contacts.

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