Payments firm Worldline plans 500-million-euro capital injection

Core Viewpoint - Worldline plans to raise 500 million euros ($583 million) through a capital increase to fund a turnaround strategy after facing several setbacks in recent years [1] Group 1: Capital Raising Strategy - The capital increase will occur in two stages: 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 [1] - The three banks have committed to subscribe approximately 135 million euros to the rights issue [2] Group 2: Shareholder Stakes - Upon completion of the capital raise, Bpifrance will hold a 9.6% stake, Credit Agricole will own 9.5%, and BNP Paribas will have a 7.9% stake in Worldline [2] Group 3: Investor Sentiment - Despite the capital raising announcement, Worldline's shares fell over 6%, reaching an all-time low, indicating a lack of investor confidence [4] - The CEO emphasized strong support from major European financial institutions, but analysts noted that investors will seek evidence of stabilization [5] Group 4: Company Background and Challenges - Worldline, which was spun off from Atos in 2014, has seen its market value decline by about 97% from a peak of over 20 billion euros in 2021 due to challenges such as client retention issues, profit warnings, governance instability, and a slowdown in consumer spending [6] - A criminal investigation into alleged money laundering at its Belgian unit has further harmed the company's reputation [6] Group 5: Future Growth Expectations - Worldline has set long-term targets of 4% annual revenue growth from 2027 to 2030, aiming for 1 billion euros in core earnings and positive free cash flow by 2027 [7] - The company anticipates 2026 to be a transition year with continued pressure on profits and free cash flow [7]