The Canadian Fund Brookfield Asset Management confirmed the information this morning and announced to withdraw the potential public tender offer about Grifols. Subsequently, the value fell sharply on the stock market, around 9% at the close of the session.
In a communication to CNMVBrookfield explains that “after carrying out a due diligence exhaustive and taking into account the reactions of the Grifols Transaction Committee and the Grifols Board of Directors on the potential offer which were communicated to the market on November 19, 2024, Brookfield informed the Grifols Transaction Committee this morning of “that in the current circumstances it is not in a position to pursue a potential offer for Grifols.”
As announced by OKDIARIO, the price proposed by Brookfield of 10.5 euros per class A share and 7.62 euros for type B shares – considered insufficient by the board of directors of Grifols – led to a battle with shareholders to achieve its improvement.
The investment bank, however, considers that 10.5 euros is not a bad price in the current state of the company and because the alternative to the public purchase offer is a capital increase at a much lower price. The most reluctant are the class B shareholders because of the strong discount offered compared to the A.
The Grifols familyfor its part, indicated that it would not support a new offer “from a third party” to withdraw it from the Stock Exchange, because “it would not support another private operation of purchase and sale”, indicated the agency, citing a family spokesperson.
End of negotiations with Grifols
Specifically, Brookfield ended months of talkswhich were made public last July, after failing to reach a possible agreement with the board of directors of the Spanish company on the price.
Last week, the board of directors of Grifols rejected the potential offer of the Canadian fund at a price of 10.5 euros per share and recommended that shareholders not accept this price, which amounts to valuing the company at blood products at 6.45 billion euros, deeming it low.
The management body of the Catalan company met last Tuesday after receiving confirmation from the fund that it was considering a price of 10.5 euros “as an indication of value without commitment” for each of its class shares. HAS in the public purchase offer that it planned to launch with the founding family for the Catalan company, which represented a premium of 22% compared to the securities listed on the Ibex 35 of the Spanish company as of July 4, 2024 ( date on which Grifols closed at 8.63 euros).
Likewise, the fund announced offering a price of 7.62 euros for each type an action b Grifols, which are those which are listed on the continuous market but are not part of the ibex.
