Predator fund builds stake in scandal-hit nursing home operator
LONDON: A vulture capitalist is now building a stake in a scandal riven nursing home operator.
Asset manager Blackrock has built a stake in scandal-hit French elderly care home operator Orpea of more than 5pc, stock market watchdog AMF said in a regulatory filing.
Blackrock, acting for clients and funds, now owns 5.27pc of the capital and 4.39pc of the voting rights of Orpea, it said.
Orpea’s shares have tanked since the French government said it would launch a wide-ranging investigation into the firm, which is at the centre of malpractice allegations, which it has repeatedly denied.
As well as being one of Europe’s biggest care home operators Orpea has become Ireland’s single biggest private nursing home operator as a result of a series of deals in recent years. It controls more than 2,100 beds in the Irish market and had been eyeing further acquisitions before its recent scandal.
Last week authorities in France said Orpea was to be subjected to an official probe amid allegations of malpractice that it has always denied, but the developments have triggered a dramatic share price fall – from €82.58 a share on January 21 to just €33 each yesterday
The French government intervened after extracts of a book alleging malpractice in its care homes in France were published last month.
“These are extremely serious allegations,” French Prime Minister Jean Castex said.
Allegations in the book by journalist Victor Castanet, include claims of severe failings in hygiene care in a home for elderly people in a Paris suburb.
The book claims food and care products in an Orpea home in a wealthy neighbourhood close to Paris were being rationed, even though the residents paid monthly fees of several thousand euro.
Orpea has rejected allegations of widespread maltreatment while also launching its own independent audit.
In Ireland it is a relative newcomer. Last year, it agreed to pay more than €100m to buy the FirstCare nursing home chain and the remaining 50pc of Donegal-based Brindley Healthcare that it didn’t already own. The French group also recently bought Athlunkard Nursing Home in Co Clare and the Kilbrew Recuperation and Nursing Care facility in Co Meath.
