The logo of French catering services and facilities management group Sodexo is seen at the company’s headquarters in Issy-les-Moulineaux near Paris, France, November 30, 2018. REUTERS/Gonzalo Fuentes/

PARIS, April 25 (Reuters) – Sodexo (EXHO.PA) has entered talks with buyout firm CVC (CVC.UL) over its restaurant voucher unit, French business daily Les Echos reported on Monday, citing sources. close to the talks. .

CVC and Sodexo declined to comment.

Sodexo is ready to sell 20% to 30% of the unit, which could be valued at up to 4 billion euros ($4.3 billion), to CVC, according to the report.

According to the report, Sodexo had approached other private equity firms, including Bain Capital and Silver Lake, but they deemed the price too high and backed out of the deal.

Morgan Stanley and AlphaValue analysts found the 4 billion euro valuation in line with estimates, but Morningstar’s Michael Field said he doubted a deal would be struck after the company apparently decided to consolidate control and named the founder’s daughter, Sophie Bellon, its new CEO. .

“Given that, it would be odd for them to then cede some control of their most profitable business to a UK private equity firm,” he said.

Les Echos said the deal would see CVC take a stake in the company, providing Sodexo, whose shares have lost 16% of their value since mid-February, with needed cash.

Sodexo shares rose around 4% after the report to more than 75.2 euros each. The stock was up 1.5% at 1445 GMT, while the French blue chip index traded down 1.3% (.FCHI).

Sodexo’s Benefits and Rewards Services unit, which provides meal cards and meal vouchers to employees, made in the six months to February 28 about 4% of its sales, but a fifth of its basic benefits.

Earlier this month, Sodexo cut its guidance citing the impact of the coronavirus pandemic and war in Ukraine, prompting it to suspend investments in Russia. He said he had already sold the division’s Russian operations.

Work from home and event closures during the peak of the pandemic have forced caterers to adapt their digital offerings, but Sodexo has also been hit by an earlier than expected termination of contracts with COVID-19 testing centers in UK. Read more

($1 = 0.9326 euros)

Reporting by Tassilo Hummel, Sarah Morland and Elena Vardon, editing by Jonathan Oatis and Emelia Sithole-Matarise

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