Orpea - comment

Two French investors have entered into a concerted agreement to acquire 5.5% of Orpea stock. Nextstone Capital and Mat Immo Beaune filled on Thursday stating they have taken the position. They are opposing the dilution of ordinary shareholders from the potential debt for equity swap of up to €4.3bn unsecured creditors. Although we initially believe it is unlikely to succeed, the opposition to non-French bondholders controlling a French nursing home is likely to be a real concern for both the regulator, the Company and the general public.