Orpea shares plummet after restructuring agreement

Clariane SE

01/02/2023 08:38

** Shares in Orpea  ORP.PA  slump around 30% after it
reached agreement in principle with creditors on its debt
restructuring
    ** The deal reached with French public lender CDC and other
investors will see the CDC-led group own 50.2% of Orpea with
other unsecured financial creditors holding 49.4% of its capital
following debt-to-equity conversion and subsequent capital
increases
    ** Current shareholders, if they choose not to participate
in capital increases open to them, will see their stake reduced
to 0.4%
    ** Apart from stakes dilution, CDC's taking control also
means no hope for the return of high profitability, and the
resumption of dividends at least for the mid-term, AlphaValue's
Yi Zhong says
    ** "In short it is a disaster for all investors," she adds
    ** Orpea shares lost around 65% in value over 2022 and
further roughly 22% since the beginning of 2023 
    ** "Korian and other non-listed competitors will be put
under pressure as well," Zhong says
    ** Peer Korian  KORI.PA  slips around 1.5%
 (Reporting by Lina Golovnya, Diana Mandiá, Piotr Lipinski)
 ((lina.golovnya@tr.com))