Beleaguered Spanish Drug Firm Grifols Stock Jumps On Monday - Here's Why

In a regulatory filing, Grifols SA GRFS said that Brookfield Capital has confirmed that it has engaged in preliminary discussions with Grifols’s key shareholders regarding a potential joint offer to delist the company’s shares from the Spanish stock exchanges and NASDAQ.

Brookfield and the shareholders have signed an exclusivity agreement to explore this possibility further and requested access to certain company information to conduct due diligence.

Also Read: Spanish Healthcare Firm Grifols’ Reputational Damage and Debt Woes: European Central Bank Probes Lenders.

According to the information provided to the Board of Directors, Brookfield, and the Grifols family shareholders have agreed to evaluate a possible joint takeover bid to acquire Grifols.

The Board of Directors held an extraordinary meeting to allow access to certain company information to carry out a due diligence process regarding the intent of the transaction, in case The board goes through, would be delisting the company.

Reuters noted that the founding family members own a 30% stake in Grifols.

In a regulatory filing, the Comisión Nacional del Mercado de Valores made the following decision: “Effective from 12:00 PM today, the precautionary suspension of Grifols has been lifted, applying to shares and related securities on the Stock Exchanges and Sistema de Interconexión Bursátil, Derivative contracts on these shares on MEFF Sociedad Rectora del Mercado de Productos Derivados, S.A.U., and Fixed Income Instruments issued on the CAPI OTF.

Earlier, CNMV agreed to suspend the trading of Grifols shares.

The suspension was lifted because sufficient information about the circumstances leading to the suspension has been made public to market operators and the CNMV.”

Citing business newspaper Cinco Dias, Reuters noted that the founding family aims to gain access to the company’s books to make a final offer in the coming weeks.

Reuters highlighted that the deal could be worth around 5.5 billion euros ($5.96 billion).

In March, Gotham City Research released a new report on Grifols questioning the company’s “transparency, integrity and ethical conduct.”

Recently,  Grifols appointed Rahul Srinivasan as the new Chief Financial Officer, effective September 16.

Price Action: GRFS shares are up 20.90% at $8.51 at the last check on Monday.

Read Next:

• Grifols Gets Downgraded: Fitch, S&P Flag Cash Flow Concerns At Pharma Company.

Photo via Wikimedia Commons