PARIS - French care home operator Orpea has initiated a significant share capital increase, aiming to raise approximately €1.2 billion, targeting key institutional shareholders, including Caisse des Dépôts et Consignations. The move, announced today, is part of a broader strategic refoundation plan intended to restore the company's financial stability by around the end of 2026.
The capital increase comes after a series of financial maneuvers designed to address Orpea's restructuring needs. In the past week, updates were released concerning the company's voting rights and share composition following a successful EUR 3.9 billion capital raise. This raise was guaranteed by unsecured creditors and notably preserved existing shareholders' subscription rights.
Earlier in November, documents related to the upcoming December General Meeting were distributed, signaling an equity boost and proposed governance revisions subsequent to an investment by "Groupement." This followed the Commercial Court of Nanterre's approval in July for a fast-tracked safeguard plan.
The court-sanctioned Accelerated Safeguard Plan included provisions for three capital increases, one of which—the Groupement Capital Increase—did not offer preferential subscription rights but did grant priority right to Existing Shareholders registered by November 15. These shareholders had an opportunity during a five-day trading period to claim New Shares before they were opened to the public in France.
The Equitization Capital Increase completed on November 30 resulted in unsecured creditors acquiring approximately 98% ownership post-increase through claim set-off. The French Financial Markets Authority (AMF) sanctioned Prospectus number #23-503 on December 5, pertaining to the Groupement Capital Increase.
The subscription priority period offered Existing Shareholders the first claim on New Shares prior to their public offering. The settlement and initiation of New Shares trading on Euronext Paris are anticipated on or around December 19, under ISIN code FR0000184798. Shareholders who do not participate in the capital increases have been cautioned about potential substantial dilution.
Proceeds from this latest capital increase are earmarked for debt reimbursement and corporate purposes. These steps are crucial as Orpea seeks to navigate through its current financial challenges and emerge with a more stable foundation for future operations.
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