(Updates with restructuring, analyst from 3rd paragraph.)
Oct. 17 (Bloomberg) -- Orco Property Group SA climbed the most in two years after the developer in central Europe said it completed a divestment that will help reduce the company’s debt.
The stock rose as much as 20 percent, its biggest intraday increase since October 2009, and traded up 11 percent to 4.33 euros by 3:49 p.m. in Paris. In Prague, Orco advanced 7 percent to 107 koruna, poised for its biggest gain since Aug. 15.
Orco said today it completed a sale of assets in Russia for about 53 million euros ($73 million). The Luxembourg-registered company, which is reorganizing its business and debt under a court-approved plan, is raising cash to refinance a 300 million- euro loan and 100 million euros of bonds at its German unit.
“We regard the news as slightly positive for the stock price,” Ondrej Moravansky, an analyst at Cyrrus brokerage in Brno, Czech Republic, wrote in a report today. “The move is part of Orco’s strategy to focus more on activities in central Europe.”
--Editors: Linda Shen, Alex Nicholson
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