Atos SE (ATO) Notes

May 30, 2024 Update

This is a good article that covers what has happened since the spin-off was announced in 2022. Key Points:

  • Original plan was to spin off its infrastructure business (called Tech Foundations).
  • Plan changed in 2023 when it announced that it would Tech Foundations to EP Equity Investment for €2 billion including €1.9 billion of debt.
  • But EP Equity is haggling over the agreed price.
  • Meanwhile, Atos is attempting to sell any assets to repay debt and warns that “the non-binding offers received for its restructuring, all entail a massive dilution of its current shareholders.

July 21, 2022 Update

  • French IT conglomerate with an ADR.

  • Going to be spinning off their Digital, Big Data, and Security businesses into a company called Evidian.

  • Timing: Second half of 2023 but I wouldn’t be surprised if it slipped into 2024 (french company, bureaucratic, etc.)

  • Spin-off business had 5% organic revenue growth in 2021 and is expecting 8% in 2022.

  • RemainCo looks like a bit of a disaster.

  • Presentation.

  • Kind of a mess. Horrible chart but probably real value there if they ever get to spin-off.

  • Questions/Strategy:

    • Wait until closer to spin-off data to see if progress is being made and fundamentals have improved.

    • SOTP story so there will be a lot of time to wait.