Gotham Insists on Projecting Its Doubts on Grifols

Gotham City Research does not give up. The bearish fund has released a seven-point statement in which it insists on the evidence that supports its statements made in January that culminated in Grifols suing in a New York district court. The communication has triggered falls in the Spanish company’s stock market of more than 6% .

Gotham statement begins by asking why Grifols and the Scranton holding company, which includes members of the family that owns the blood products multinational and other company executives, consolidate the Haema and BPC Plasma assets at the same time, and if both Grifols and The estate informed its creditors of this treatment of accounts .

It continues to cast doubt on Grifols’ claim that the relationship with Scranton is limited to two issues: the lease of the blood products company’s headquarters and the powers over Haema and BPC. In this second point, he remembers that the National Securities Market Commission (Cnmv) is investigating the veracity of this statement .

Gotham points out in the third point that Grifols has not reflected in its financial reports payments of $59 million in concept of a loan from the Spanish company to Scranton, a fact that the fund knows from Scranton’s accounts. This is why one wonders aloud about the exact amount that Grifols lent to Scranton in 2021 and what the interest rate on that loan was.

Find out why Gotham insists on the evidence that supports its statements made in January that culminated in Grifols suing in a New York district court and read the latest financial news of the day with the Born2Invest mobile app.

Gotham questions Grifols about contradictions regarding the founding family’s ownership percentage of Scranton

The bearish fund continues to ask in the fourth and fifth points about Grifols’ loans to “related parties” and whether Scranton is among those parties, and about what terms these loans were given. In the fifth point, specifically, it points out that there were a total of zero loans of this type in 2018 .

The sixth point is dedicated to questioning who owns Scranton Enterprises, since they see a contradiction between a 2011 article in which it is stated that the Grífols family retains 70% of the company, while in the clarifications of the later multinational blood products According to Gotham’s first accusations, it is argued that the founders’ participation in the company is less than 20% .

And in the seventh and final point, Gotham City Research questions the rigor of Baker McKenzie in the analysis of Grifols’ commercial and accounting practices, since they understand that the American firm is specialized in legal issues, not in the forensic audit of business accounts . He ends up challenging the Spanish multinational to hire an analyst truly specialized in accounting and to make these results public.

This counterattack by Gotham comes weeks after Grifols has received accolades following the confirmation of the sale to Haier of its 20% stake in Shanghai Raas Blood , something that the fund assured could not happen, and after BlackRock increased its presence in the blood products company above 4%. But also after the persistence of some investment managers to increase their short position against Grifols.

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First published in PlantaDoce. A third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the originals will prevail.

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