Grifols Rises 2% after Brookfield Announced Is Negotiating with Sovereign Funds for a Takeover Bid

Grifols shares rose by more than 2% shortly after the opening of the Stock Market, leading the rises of the Ibex 35, after it was revealed 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, Grifols shares rose 2.6% at 9:15 a.m. , to 10.1 euros per share, after closing Thursday’s session with a rise of 0.3%, to 9.8 euros per share.

According to an anonymous source close to the operation cited by Bloomberg and reported by Europa Press, Brookfield has held talks with the ADQ fund of the United Arab Emirates and the GIC of Singapore, although no agreement has been reached so far. It would be a takeover bid, since the intention is to remove the company from its stock market listing .

Grifols would cease to be listed on the stock exchange if the Brookfield operation goes ahead

Last week, 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 purpose of this money would be to refinance Grifols’ debt , 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 on Gotham City 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, according to sources cited by Bloomberg, any proposal could give the company an equity value of around 8 billion euros.

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(Featured image by Yashowardhan Singh via Unsplash)

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