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Lagardère obtains a state-guaranteed loan of 465 million euros

The Lagardère group, whose turnover is battered by the Covid-19 epidemic and contested governance, was granted a state guaranteed loan of 465 million euros, according to the Official Journal published on Sunday January 3.

The group, led by Arnaud Lagardère and owner of the publisher Hachette, the Relay boutiques and the Europe 1 media, Paris Match and The Sunday newspaper, had recorded in the third quarter a turnover down 38% to 1.2 billion euros.

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The revenues of the distribution branch in stations and airports (Relay and duty free shops) notably collapsed by 66% to 393 million euros, after having already fallen by 55% in the first half.

Twelve banking institutions

State Guaranteed Loans (PGEs) facilitate the granting of a loan to a company with cash flow difficulties. In the event of non-repayment, the State undertakes to assume the major part of the rest of the credit to be repaid, in this case 80%.

According to the text of the decree, Lagardère SCA took out this loan from twelve banking establishments, including BNP Paribas, Commerzbank and Société Générale.

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The family group, which is listed on the stock exchange and has the status of a limited partnership with shares (SCA), is also the subject of a rebellion by its two first shareholders, the Vivendi group and the Amber fund: they together represent 49% of the capital and criticize the governance of Arnaud Lagardère, but have so far failed to obtain the convening of an extraordinary general meeting.

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