By Gianluca Lo Nostro (Reuters) -French payments firm Worldline said on Thursday it plans to raise 500 million euros ($583 million) in fresh equity to support a turnaround plan and rebuild investor
Worldline to Raise €500 Million Through Major Capital Increase
Worldline's Strategic Capital Increase
By Gianluca Lo Nostro
Details of the Capital Raise
(Reuters) -Worldline on Thursday unveiled plans to raise 500 million euros ($583 million) by tapping some of France's biggest banks to fund a strategy aimed at turning around the payments firm following years of setbacks.
Investor Reactions and Market Impact
The two-stage capital increase will begin with a 110-million-euro reserved share sale to Bpifrance, Credit Agricole and BNP Paribas, followed by a 390-million-euro rights issue open to all shareholders.
Future Growth Projections
The three lenders have committed to subscribe around 135 million euros to the rights issue.
Upon completion of the capital raise, expected in the first quarter of 2026, Bpifrance will hold a 9.6% stake in Worldline, Credit Agricole will own 9.5%, with BNP Paribas at 7.9%.
Swiss stock exchange operator SIX Group, Worldline's biggest investor, said it has accepted dilution as it will not participate in the capital increase. SIX expects a 550-million-Swiss-franc ($693.48 million) impairment on its Worldline stake and said it will manage it as a financial investment in the future.
NEW PLAN FAILS TO WIN BACK INVESTORS
The move failed to calm investors as shares in Worldline fell over 6%, hitting a new all-time low on Thursday.
Chief executive Pierre-Antoine Vacheron dismissed concerns that the company, valued 581 million euros as of Wednesday, could become a takeover target despite the new funding.
"We have very strong support from anchor shareholders, which are very large financial institutions in Europe," Vacheron said in a call with reporters. "When you look at the competition, they are not really in good shape."
J.P. Morgan analysts said in a note the new plan gives the firm credibility but that investors will want to see proof of stabilisation.
Worldline, spun off from IT group Atos in 2014, was a standout in France's technology sector before its market value plummeted by about 97% from a 2021 peak of over 20 billion euros.
The company has faced challenges including client retention, repeated profit warnings, governance instability, and a broader slowdown in consumer spending that has impacted the payments industry.
A criminal probe into alleged money laundering at its Belgian unit has further damaged its reputation.
RETURN TO GROWTH EXPECTED FROM 2027
On Thursday, Worldline set longer-term targets of 4% annual revenue growth between 2027 and 2030, 1 billion euros in core earnings, and positive free cash flow as early as 2027.
The French group said 2026 will be a transition year, and it is expecting more pressure on profits and free cash flow.
The planned divestments of its mobility unit, its North American operations, and its electronic data management business will bring in up to 400 million euros in cash proceeds, Worldline said.
($1 = 0.8575 euros)
($1 = 0.7931 Swiss francs)
(Reporting by Gianluca Lo Nostro; Editing by Matt Scuffham, Philippa Fletcher and Joe Bavier)
