JPMorgan Reduces its Position in Grifols to Below 3% Amid Brookfield Negotiations

The largest US bank by assets, JPMorgan Chase, has reduced its stake in Grifols from 3.09% to 2.99% , after it became known that the Canadian firm Brookfield is in the process of searching for and making informal contacts with several sovereign funds to participate in the takeover bid (OPA) for the Catalan blood derivatives company.

Specifically, the bank’s 2.99% stake is distributed between 0.15% of voting rights attributed to shares and 2.83% through financial instruments, which were notified to the supervisor on August 30th, according to the records of the National Securities Market Commission (CNMV) consulted by Europa Press.

JPMorgan Chase holds 12.7 million Grifols shares, which at the current market price (around 9.9 euros on the Ibex 35 at 9 a.m. on Monday) are worth more than 126.4 million euros.

This new notification to the CNMV has been produced after it was learned last Thursday, August 29th, that Brookfield has held talks with the ADQ fund of the United Arab Emirates and the GIC of Singapore , although no type of agreement has been reached for the moment.

Grifols could have a net worth value of around 8 billion euros

In turn, almost two weeks ago it was revealed through leaks that Brookfield would be seeking financing of around 9.5 billion euros to be able to launch the takeover bid with the Grifols family for the pharmaceutical company. The objective of this money would be the refinancing of the debt that Grifols has, which includes loans and high-yield bonds.

Specifically, these funds would be necessary because the takeover bid would trigger a clause in Grifols bonds whereby holders could request the company to return the capital invested at its nominal value, that is, above the market value of some of these bonds, which have seen their price decline due to the falls the company has experienced since the attack by the short-term fund Gotham City Research in January.

On a broader level, it is worth remembering that last July Grifols confirmed that the Catalan company’s family shareholders had reached an agreement with the Brookfield fund to evaluate a possible joint takeover bid for the entire share capital of the blood derivatives company, while the due diligence process is still underway and any proposal could give the company an equity value of around 8 billion euros. This would be a takeover bid, since the aim is to remove the company from its stock market listing.

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(Featured image by Matthew Foulds via Unsplash)

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