Scandal-Hit Orpea Falls 33% as CdC-Led Group Takes Control (1)

Orpea SA shares tumbled as much as 33% after a group of investors led by French state-owned lender Caisse des Depots et Consignations agreed to take control of the beleaguered retirement-home operator that was embroiled in one of the country’s biggest corporate-governance scandals.

Orpea reached an agreement in principle with Caisse des Depots et Consignations and other investors on its financial restructuring, including the conversion of €3.8 billion of unsecured debt into equity and the raising of €2 billion in capital through the sale of shares and preferential rights, the company said in a statement on Wednesday.

After the transactions, ...