By Helena Smolak
Shares of Orpea have experienced a significant surge after a recent decision by a French court. The ruling permits Caisse des Depots et Consignations and other investors to acquire shares without the need for a takeover bid. This development paves the way for capital increases that are part of Orpea’s financial-rescue plan.
At 1617 GMT on Thursday, Orpea shares were trading 43% higher at EUR1.40.
The Paris Court of Appeal affirmed a decision made by the French stock-market regulator in May, which granted an exemption to a group of investors led by a French bank. This exemption allows them to acquire shares of Orpea without being required to file a takeover bid.
The court’s decision is intended to make it easier for struggling companies to undergo restructuring.
Orpea announced on Thursday that the court’s decision was the final condition needed to proceed with the planned capital increases outlined in their rescue plan.
In March, a French court initiated an accelerated safeguard procedure for Orpea. Judicial administrators were appointed to oversee the operations of the indebted operator, which manages retirement homes and clinics.