French firm backs out of Uniwide deal

The expected rehabilitation of the debt-saddled Uniwide Group of Companies suffered a severe setback with the sudden pullout of Casino Guichard-Perrachon from a P1.5-billion buy-in deal to give the French retail giant control of the company’s operations.

Monico Jacob, the Securities and Exchange Commission-designated chairman of Uniwide’s interim receivership committee, informed the Philippine Stock Exchange that Casino had backed out of the deal for still unknown reasons.

Jacob said Casino officials, via a conference call, told the Uniwide group late last Wednesday that "it would no longer extend the memorandum of understanding executed between the parties in February 2000 which expired on Dec. 31, 2000."

Earlier, prior to the deadline, the receivers sought to extend the effectivity of the MOU after all the creditor banks substantially agreed with the terms and conditions toward the rehabilitation of the group.

The receiver committee has long been seeking the approval of Uniwide’s major bank creditors to hasten the entry of Casino as a strategic partner.

"In view of this development, the exclusivity provision in the MOU has likewise expired; hence the Group shall now commence discussions which other strategic investors that have previously expressed interest in the Uniwide Group of Companies," Jacob said.

He added that in the meantime, Uniwide continues to operate its network of retail stores under the supervision of the interim receivers.

The failed deal with Casino made listed firm Uniwide Holdings the top loser in yesterday’s trading at the stock market. It’s share price fell 19 centavos or 37.25 percent to 32 centavos.