EuropaCorp confirms options under review include additional assets sale, recapitalisation
27 NOV 2017
EuropaCorp SA [EPA:ECP] announced, it has noticed various rumors in the press concerning EuropaCorp and its strategic intentions to date. In response to these market rumors, EuropaCorp reminds its priority strategic objectives and specifies the scope of its current reflections.
The Company’s strategy is primarily to refocus on core business: production of English-language feature films of up to 2 to 3 films per year, production of French-language feature films of 2 films per year, production of English-language TV series, distribution of films and international sales. These are the fundamentals which have made EuropaCorp’s success.
Within this strategy, the Company is considering different options:
Sale of non-strategic assets: the Company has already sold most of its non-strategic assets i.e. the Multiplexes activity (for around EUR 20m), the catalogue of music rights (for around EUR 15m) and the French television activity (for EUR 11m), in the process of finalization. Following on from the sales already realized, the Company pursues its reflection on potential additional sales, circumscribed to all or part of the postproduction activity and/or of the catalogue of films Roissy Films.
Reduction of G&A expenses: by refocusing on its core business, the Company anticipates a decrease in overheads to a level more consistent with the volume of films and TV series activity.
Reinforcement of financial strength: the Company has already increased its financial capability by realizing the above-mentioned sales and by the EUR 60m capital increase to Fundamental group in November 2016. Given the cost of debt and maturity of its credit lines (October 2019 for the senior and April 2020 for the secondary), the Company is carrying out an in-depth reflection on a potential recapitalization and/or a restructuring or refinancing of its debts. The Company reckons that the perspectives offered by the strategic reorientation, the resources cleared by the sales of assets and the reduction of overheads, represent an attractive opportunity for potential financial and/or business partners.
These reflections are still preliminary at this stage and no concrete transaction can be announced. The Company will keep the market informed of the evolution of the potential sales and of the results of its reflection on its financial structure.