Orpea - comment

Press coverage continued over the weekend on Orpea with articles in the French press speculating that Caisse des Depots et Consignations (CDC) will take an equity stake in Orpea post restructuring of Oprea’s balance sheet. The level of equity stake is muted to be in the 20-30% range, in partnership with a mutual insurance group. There is no doubt the restructuring of Orpea is political with significant electoral concerns re: nursing homes (plus the thousands of jobs at stake). But before we get to equity raise, CDC acknowledge that the balance sheet has to be restructured. We await the transformation plan from the Company tomorrow.