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 confidence after years of challenges.
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.
The three banks 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 9.5%, and BNP Paribas 7.9%.
Swiss exchange operator SIX Group, previously Worldline’s biggest investor, said it has accepted dilution as it will not participate in the capital increase.
Shares in Worldline rose 3.7% in early Paris trading, after swinging between gains and losses, hitting a new all-time low during the session before recovering.
The volatility left the company with a market value of about 600 million euros.
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.
Worldline has experienced cash flow pressures this year due to weaker earnings and high restructuring costs, forecasting free cash flow between break-even and a 30-million-euro loss by the end of 2025.
On Thursday, it 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 company also said that 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.
($1 = 0.8575 euros)
(Reporting by Gianluca Lo Nostro; Editing by Matt Scuffham, Philippa Fletcher)
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