(News Bulletin 247) – In the midst of financial restructuring, the operation of retirement homes will come under the control of a group led by the Caisse des Dépôts this Tuesday following its second call to the market.

The Orpea group of private nursing homes will come under the control of a group led by the Caisse des Dépôts on Tuesday, December 19, as part of the procedure which should help it regain financial balance, almost two years after the revelations about the practices of the former management.

The group led by the Caisse des Dépôts, the financial arm of the State, with Maif, CNP Assurances and MACSF (mutual health professionals), enters the capital of Orpea during a capital increase of 1 .16 billion euros, according to previous information from Orpea.

A settlement-delivery of shares scheduled for this Tuesday

“Settlement-delivery” of these new shares is scheduled for December 19, 2023. The group will hold 50.18% of the capital of the group of private accommodation establishments for dependent elderly people (Ehpad), which was burdened by a debt of nine billion euros.

In detail, the Caisse des Dépôts et des Consignations (CDC) acquired 517.9 million euros of shares to hold 22.41% of the group’s capital, Maif invested 342.4 million euros for 14 .81% of the capital, MACSF 171.2 million euros for 7.41% of the capital and CNP Assurances 128.4 million euros for 5.56%.

Unsecured creditors will hold 48.84% of the capital. The remaining 0.98% of the capital will correspond to the float, i.e. the portion of the capital tradable on the stock market.

Three capital increases

This operation is part of the group’s safeguard plan. It provided for three successive capital increases to enable Orpea to erase part of its debt and regain better financial health.

Of the three planned capital increases, two have therefore taken place and the third will take place in the near future. The group’s financial restructuring is expected to be completed during the first quarter of 2024.

Following this takeover, a general meeting of Orpea will be held on Friday. The new shareholders will appoint and vote in favor of new directors for the group, including Philippe Grangeon, the former special advisor to Emmanuel Macron.

The Orpea group found itself in great financial difficulty after the publication in January 2022 of the investigative book “Les Fossoyeurs” by journalist Victor Castanet.

The work revealed mistreatment of residents, financial irregularities and failings in the management of human resources, under the former management. The group has since been the subject of legal proceedings. It is also leading a transformation plan, under the leadership of new management.

Orpea, present in around twenty countries, manages nursing homes as well as specialized clinics. The group has more than 76,000 employees and welcomes more than 267,000 patients and residents each year, mainly in France.

(With AFP)