Shares of Orpea, a leading provider of elderly care, fell 6.1% to €1.04 Today after the company announced a reshuffle of its board as a key element of its restructuring strategy aimed at reducing its debt burden. The proposed new board members are part of a broader effort to stabilize the company's finances and will be subject to shareholder approval at a vote scheduled for December 22.
The new board composition is set to include representatives from Orpea's controlling investor group, which is poised to hold 50.2% of shares and voting rights after planned capital increases are completed under the terms of the restructuring agreement. This group consists of prominent French insurance and pension funds, with Audrey Girard from CDC, Stephane Dedeyan representing CNP Assurances, Pascal Demurger from MAIF, and MACSF's Stephane Dessirier.
The state-owned investment fund has put forward Philippe Grangeon and Sibylle Le Maire for consideration, while MAIF has recommended Frederique Mozziconacci for the board. Additionally, Guillaume Pepy is set to continue as chairman, and Laurent Guillot as CEO. Meka Brunel has been nominated as an independent director.
Orpea's share price had previously experienced a surge following a favorable French court ruling that permitted share acquisition without triggering a mandatory takeover bid. The upcoming vote in December will determine if these proposed changes will be implemented as Orpea seeks to navigate through its financial challenges.
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