Worldline's Strategic Equity Boost: Rebuilding Confidence Amidst Turmoil

Worldline plans to raise 500 million euros through fresh equity to support a turnaround plan and strengthen investor confidence. The capital increase involves a reserved share sale and a rights issue. The move follows challenges including profit warnings, governance instability, and a criminal probe affecting its reputation.

Worldline, a leading French payments firm, announced a plan to raise 500 million euros to aid its turnaround strategy and regain investor trust after enduring substantial challenges. This 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 available to all shareholders.

The rights issue has commitments of 135 million euros from the three banks. Once the capital raise is completed, expected in the first quarter of 2026, ownership stakes will include 9.6% for Bpifrance, 9.5% for Credit Agricole, and 7.9% for BNP Paribas. Although formerly the biggest investor, SIX Group has accepted dilution by not participating in the increase, causing fluctuations in Worldline's stock value.

Previously a standout in France's technology sector, Worldline has seen its market value plummet due to various challenges including client retention issues and a criminal probe at its Belgian unit. Despite these setbacks, the firm has set ambitious future targets, including 4% annual revenue growth until 2030 and generating 1 billion euros in core earnings.

(With inputs from agencies.)