Grifols has obtained an express declaration from the company with which it has agreed to sell its 20% in Shanghai RAAS to guarantee that the operation will be carried out. This is a key move to reassure the markets ahead of tomorrow's return to trading, in view of the importance of this transaction in reducing the pharmaceutical company's debt.
In a note sent to the National Securities Market Commission (CNMV), the company explains that, "given the concern raised in the markets" about how the recent Gotham City Research report may affect the sale of 20% of Shanghai RAAS has contacted the buyer, Haier Group Corporation, to verify that the process is moving forward.
The response has come from the vice-presidency of Haier, who has informed Grifols that the buyer "continues working to close the agreement as originally planned." The company expects to close this operation during the first half of this year, according to the calendar already published.
The plan is to sell 20% of US 26.2% in the Chinese company for about 1.8 billion dollars (around 1.6 billion euros), which represents a premium of 14.96% over the average price of the Chinese company. . The announcement was made at the end of last year and caused a 9% rise in the Grifols stock market.
The operation is key because the funds will be used to reduce debt and meet market commitments. The agreement, company sources point out, is "binding", so that "both parties are contractually obliged to comply with their obligations" as long as the stipulated conditions are met, including the approval of the regulatory authorities.
"If the closing conditions are met and one of the parties refuses to close the transaction, this would constitute a material breach of the agreement" and would imply "the corresponding legal claims." There is almost no penalty clause if the agreement is breached, as is customary in the Chinese market.
Grifols shares lost 40% last week and part of the company's efforts have been directed at convincing the market that the milestones to reduce debt will be met. “Grifols will comply with the transaction in China,” its CEO, Thomas Glanzmann, told analysts.
The purchases of Novartis' diagnostic business, the entry into China or the acquisition of the German company Biotest have been several of Grifols' international operations in recent years that have allowed the company to acquire a global dimension, although at the cost of skyrocketing debt. up to 9,540 million euros in the third quarter of last year, which is equivalent to 6.7 times the gross operating profit (ebitda).
