Brookfield moves piece in the public acquisition offer (opa) that is studying to launch on Grifols with the founding familyThe Canadian fund is negotiating with banks up to 9.5 billion euros to be used to refinance the blood derivatives manufacturer’s huge debt.
According to reports Bloomberg, The investment firm has asked the banks to provide this amount to repay the existing debt of Grifolswhich includes high-yield loans and bondsParticipating banks would undertake to provide the financing before selling it to investors.
By the end of the first half of 2024, The multinational’s net financial debt according to the criteria of the agreement with its creditors stood at 8,262 million euros and reached 9,396 million euros according to the balance sheet. As explained by Expansión, the clauses of the financing agreements between the company and its creditors require the company’s loans and bonds to be paid in advance in the event of a “change of control” of the capital.
Change of control
Brookfield has not yet formally presented the takeover bid for Grifols, but everything indicates that it wants to acquire 70% of the shareswhile the Grifols will maintain the 30% they already own, which would effectively result in this change of control and the obligation to repay the debt.
If Brookfield and the Grifols finally privatize the group based in Sant Cugat del Vallès (Barcelona), the debt package will be around 8 billion euros in debt drawn down, plus a credit line of up to 1.5 billion eurosMost of the financing is likely to be in dollars, Bloomberg said, adding that one bank has offered to back the entire amount.
Initial estimates suggest that the takeover bid will be worth up to 7 billion euros. Adding debt, the deal would likely be the largest acquisition of a listed European company since at least 2022, according to data from the US agency.
Bag
Following the news, the pharmaceutical group’s shares opened Wednesday’s session with gains of up to 6%.later stabilizing with an increase of 3.9% at the close of the day.
The takeover bid of Brookfield and the family arrives after a tumultuous year for the company that makes plasma-based medicines, triggered by reports of Gotham City Researchwhich questioned the company’s accounts in January and caused strong scrutiny over its governance and transparencySince then, Grifols has removed the founding family from the management of the company and has hired Nacho Abia as CEO.
The company’s stock value, however, has not managed to recover, with a year-to-date drop of almost 40%.which has led the Grifols to join forces with Brookfield to exclude the company from the stock market.
