Orpea: name change welcomed by stock market rebound

(CercleFinance.com) - Orpea posted a second strong session on the Paris Bourse on Thursday, with investors hailing the retirement home operator's name change as a 'new stage in its history'.


The group, which has been battered by the scandal surrounding the publication of the essay 'Les Fossoyeurs' and by a highly dilutive capital increase, announced on Wednesday that it had decided to change its name to emeis, which means 'we' in ancient Greek.

In a press release, Orpea explains that this new identity is intended to convey its new ambition, which places the collective at the heart of its corporate project, from employees to residents to families.

Following a process of consultation and internal and external contributions, the company has also given itself a new raison d'être: 'together, let's be a force for life for the most fragile'.

'With the support of our new shareholders (.... we look to the future of emeis with great confidence and a keen awareness of the importance of our mission in society", emphasized Laurent Guillot, the company's CEO.

Since its massive restructuring, Orpea has been 50.2% owned by Caisse des Dépôts, CNP Assurances, MAIF and MACSF Epargne Retraite.

Despite this turnaround, analysts describe the company's situation as still "peculiar", marked by insufficient visibility around earnings and cash flow.

The dependency care specialist's shares gained over 7% on Thursday morning, topping the broad Parisian SBF 120 index, after having already gained over 20% the previous day.

This rebound should be seen in the context of the share's penny stock status, which now costs just a few cents, making it the subject of intense speculation and high volatility.

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