Orpea: Oddo still a buyer.
(CercleFinance.com) - This Tuesday Oddo confirmed its "buy" rating on Orpea, along with its target price of 116 euros, the day after the group's announcement of its acquisition of 2,000 beds in Brazil and 1,000 beds in Portugal.
As part of these operations, the end-of-life specialist, which however did not provide the financial terms of the deal, has created two joint ventures with SIS in both countries. Orpea will hold 49% of each structure, with a call option for the balance, which may be exercised in the next few years (2 to 4 according to the analyst).
The group also announced the repayment of its Ornane January 2020 bond, issued in July 2013 (Ornane holders wishing to convert will have to exercise their right to the award of shares no later than on 22 September 2017). This deal was expected and mechanically increases capital, and thus the group's financing capacity, but also reduces its financial costs, while the theoretical dilution remains modest, Oddo underlines.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
As part of these operations, the end-of-life specialist, which however did not provide the financial terms of the deal, has created two joint ventures with SIS in both countries. Orpea will hold 49% of each structure, with a call option for the balance, which may be exercised in the next few years (2 to 4 according to the analyst).
The group also announced the repayment of its Ornane January 2020 bond, issued in July 2013 (Ornane holders wishing to convert will have to exercise their right to the award of shares no later than on 22 September 2017). This deal was expected and mechanically increases capital, and thus the group's financing capacity, but also reduces its financial costs, while the theoretical dilution remains modest, Oddo underlines.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.