Emeis (Orpea) - comment

As part of the financial restructuring of Emeis (previously Orpea), management has undertaken to dispose of c. €1.5bn of assets by the end of FY25.  Emeis updated the market this morning, outlining a further €251m of disposals, bringing the running total to c. €900m.  Emies has disposed of its activities in Chile and Czech Republic for €171m and Real Estate assets across 6 countries for c. €80m.  We are not surprised by Emeis selling some country operations in full as we can’t see any synergies for some smaller country operations.  The real estate assets were sold to real estate funds dedicated to healthcare, for a capitalisation rate of c.5.5%.