Orpea Stock Price, News & Analysis

ORPEA has signed an agreement to sell a portfolio of 32 retirement homes in The Netherlands to Syntrus Achmea Real Estate & Finance for approximately 125 million euros. This transaction aligns with the company’s asset disposal strategy and is part of its reorganization plan, expected to contribute to a one billion euro asset disposal program by the end of 2023. The facilities will continue to be operated by Dagelijks Leven, which offers specialized and affordable care for seniors.

ORPEA's first-half 2022 consolidated revenue reached €2,312 million, an 11.7% increase year-on-year with 6.4% organic growth. In Q2 2022, revenue was €1,192 million, up 14.4% year-on-year, driven by favorable pandemic recovery dynamics and solid performance in hospitals, particularly in France and internationally. Growth stemmed from both existing and newly acquired facilities, especially those in Ireland and Switzerland. Despite this growth, the company noted operational challenges and anticipated increased costs from inflation and crisis management efforts.

The Combined General Meeting of ORPEA shareholders is scheduled for July 28, 2022, at 9:30 a.m. in Paris. The agenda includes the appointment of four directors and the renewal of statutory auditors, Mazars S.A. and Deloitte & Associés. Additionally, the total remuneration for departing CEO Mr. Philippe Charrier will be approved. This meeting follows a preliminary notice published on June 22, 2022, with modifications confirmed by the Board on July 1, 2022. Relevant documents are available on the Company's website.

ORPEA has initiated a selection process for a new statutory auditor due to the expiration of Deloitte & Associés' mandate. The Board of Directors will recommend the appointment of Mazars S.A. for six years, along with the reappointment of Deloitte for the same term, during the upcoming General Meeting on July 28, 2022. Both firms demonstrated the capability to reinforce company controls while maintaining continuity with the existing co-auditor, Saint-Honoré BK&A. This decision aims to enhance auditing practices within ORPEA.

ORPEA has completed a second drawdown of 650 million euros from its financing agreement, following an initial drawdown of 250 million euros. These funds will be allocated for general corporate purposes, including debt service and capital expenditures. The company has granted security interests to lenders, including first-ranking pledges on its subsidiaries, representing 25% and 32% of its turnover. ORPEA continues to engage with banking partners regarding an additional 1.5 billion euros line of credit, maintaining a remaining availability of approximately 829 million euros.

The Board of Directors of ORPEA has approved the compensation for Philippe Charrier following his departure, effective July 28, 2022. His remuneration includes €41,269.84 for his role as Chairman and €319,682.52 as CEO from January 30 to June 30, 2022. Notably, he will not receive severance pay or additional benefits. The board plans to award him exceptional compensation consisting of ORPEA shares, contingent on shareholder approval on July 28, 2022, recognizing his efforts in navigating significant financial challenges and the recruitment of a new CEO, Laurent Guillot.

The ORPEA Group announced significant Board of Directors changes following Laurent Guillot's appointment as CEO on July 1, 2022. Proposed changes include five new directors, four of whom are independent, to enhance expertise. The Annual General Meeting (AGM) will take place on July 28, 2022. Notable new board members include Guillaume Pepy, Isabelle Calvez, John Glen, and David Hale. Current Chairman Philippe Charrier will resign, while a new committee structure will be developed. This restructuring aims to restore confidence and guide ORPEA through ongoing transformations in the healthcare sector.

ORPEA Group has published final audit conclusions by Grant Thornton and Alvarez & Marsal regarding nursing home resident care and employment law in France. The audits, initiated in response to allegations highlighted in a January 2022 book, found no evidence of widespread abuse, but identified significant deficiencies in managing staffing levels and complaints. CEO Philippe Charrier emphasized the group's commitment to transparency and improving care standards. ORPEA has started implementing corrective measures and plans to enhance its practices to support vulnerable individuals.

ORPEA's Board of Directors announced remuneration policies for corporate officers for 2022, focusing on the newly appointed CEO, Laurent Guillot, and Chairman, Philippe Charrier. Guillot will receive a fixed annual salary of 760,000 euros, with a variable component based on performance metrics, including a CSR emphasis. Charrier's fixed pay remains at 260,000 euros, with no variable pay. The total variable remuneration for Guillot could reach 380,000 euros if performance targets are met. Shareholder approval is required for some remuneration aspects.