(AOF) – A collective of more than 200 investors in emeis, formerly Orpea, announced its intention to sue the company's former board of directors in a class action. “Together, the investors are seeking compensation for losses suffered in an unprecedented class action against the company’s former board of directors and auditors,” they said in a statement.
Since the publication in 2022 of the book “The Gravediggers”, Orpea has had to face accusations of serious failures in the care of the elderly and financial embezzlement.
The collective, which indicates that it has already brought together 230 complainant investors, aspires to obtain compensation after the losses suffered due to the collapse of the stock market and the placement of the company in safeguard procedure.
Investors have until January 10 to contact the Orpea Investors Collective, which intends to file the official summons with the Paris commercial court before January 25, the statute of limitations date for the alleged facts.
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Key points
– European number 1 in global dependency care with nearly 94,000 beds and 1,031 establishments, created in 1989;
– Turnover of €5.2 billion, distributed between France-Benelux for 58%, Central Europe for 26%, Eastern Europe for 10%, the Iberian Peninsula and Latin America ( Brazil, Chile and Uruguay) for 5.5% then China and the United Arab Emirates;
– Five activities: retirement homes (residents over 80 years old), serviced residences (residents over 70 years old), medical and psychiatric clinics, home services and care;
– Value creation model based on international selectivity, the reduction in the holding of real estate assets, the recovery of the financial situation and the improvement of working conditions leading to better consideration of the needs of residents or sick;
– Capital controlled at 50.2% by 4 shareholders acting in concert: the Caisse des Dépôts for 22.4%, the Mutual of Teachers of France for 14.8%, the MACSF for 7.4% and CNP Assurances for 5, 6%;
– Renewal of governance, Guillaume Pepy chairing the board of 13 directors, Laurent Guillot being general manager.
Challenges
– Agility of the business model led by a reconstructed executive committee:
– refocusing on France, Germany, the Netherlands, Switzerland, Ireland, Spain and Austria,
– implementation of synergies between businesses, simplification and unification of the information infrastructure (2024 budget of 3% of turnover),
– financial restructuring – sales of €800 billion by the end of 2025, LTV ratio less than 50,
– optimization of the real estate portfolio through leases and sales, including 8 clinics purchased in July for €185 million,
– innovation focused on digitalization and optimization of care;
– “Green building” 2030 environmental roadmap:
– reduction of 16%, compared to 2019, by 2025 and 30% by 2030 in energy consumption and, for carbon emissions, by 17% then 30%,
– energy audits, production of renewable energy at establishment level;
– After the financial restructurings from December to March (capital increase and equity contribution), balance sheet still tight: LTV ratio of 55% at the end of 2023, equity of €1.9 billion and cash of €856 million.
Challenges
– Recovery in France (occupancy rate of retirement homes at 83.8 in September compared to 85.6% for the group) for which a contribution of 75% to the recovery of the margin is expected;
– Real estate strategy slowed down by tensions in the real estate market:
– objectives: ownership of 20 and 25%, compared to 46% in 2022, of the portfolio worth €4.8 billion and creation in the medium term of a dedicated real estate company with a 10% promotion margin,
– execution: €340 million net of sales expected in 2024, vs. €449 million net expected and risk of sales of operational assets (including operations) to improve the financial situation by early 2025;
– Questions about the consequences of the recent takeover of the real estate assets and retirement homes in Germany, Italy and Luxembourg of the former partner Mr. Lugano;
– After an 8.4% increase in revenues at the end of September, 2024 expectations of a gross operating surplus close to €730 million;
– Ambition 2025: €5.23 billion in revenue, up 9% per year, and 20% operating margin;
– Absence of dividend.
