Worldline's Financial Revival: A Bold Turnaround Strategy

Worldline plans to raise 500 million euros to support its turnaround strategy. The capital increase will involve key investors such as Bpifrance, Credit Agricole, and BNP Paribas, leading to significant stake holdings. Despite past challenges, Worldline aims for long-term revenue growth and improved financial stability.

French payments firm Worldline has announced a strategic plan to bolster its finances by raising 500 million euros in fresh equity. The move aims to restore investor confidence following a series of setbacks.

The capital increase will occur in two stages: an initial 110 million euro reserved share sale involving Bpifrance, Credit Agricole, and BNP Paribas, and a following 390-million-euro rights issue available to all shareholders. The financial institutions have collectively committed to subscribing 135 million euros.

Worldline, once a sparkling player in France's technology sector, has seen a drastic reduction in its market value due to challenges like client retention issues and governance instability. It faces financial pressures and reputational damage from a criminal probe into its Belgian unit. However, it is setting sights on longer-term targets that include divestments and annual revenue growth.