THE Canadian Pension Plan Investment Board (CPPIB) yesterday bought a 15 per cent stake worth £269m in the French nursing-home group Orpea.
CPPIB has bought a stake from Dr Jean-Claude Marian, the founder and chairman of Orpea and from another entity in a deal that also involves Orpea raising new funds.
Dr Marian will remain a key shareholder and has agreed to an 18 month lock-up period during which he will sell no further shares.
At the same time Orpea is launching an up to €120m capital raise in order to fund further expansion.
The share issue is being underwritten by CPPIB.
Yves Le Masne, chief executive of Orpea, commented: “We are very pleased with CPPIB’s investment in Orpea’s capital, which is part of a long-term partnership, enabling us to enter into a new international development phase.
“Orpea will indeed benefit from CPPIB’s knowledge, including its real estate expertise, and outstanding network to help extend Orpea’s growth and profitable business model in countries facing the challenge of an aging population.”
In early 2013, Canaccord Genuity was appointed by Dr Marian to explore the potential divestment of all or part of his 23 per cent stake in Orpea.
ADVISERS CANACCORD GENUITY
Canaccord Genuity’s involvement in this Canadian Anglo-French deal is exactly the sort of cross-border transaction the firm has been looking for since it hired Alexis de Rosnay in September last year to be its chief executive. It also recently acted for the Ontario Teachers’ Pension Plan Board on its acquisition of UK biscuit manufacturer Burton’s Holdings. The group, a combination of Canaccord, and the old Collins Stewart and Hawkpoint, has also been involved in the £160m Tungsten and £200m Quindell fundraisings, two of the largest deals on the AIM market in 2013.