Grifols shares fall due to Brookfield offer

Grifols shares (GRF.ES), fell by 3% after the publication of information that Brookfield plans to offer 7 billion euros for the company. The offer would therefore be 10.5 euros per share, which would be below Friday’s closing price of 11.12 euros.

10.5 euros per share for Grifols

Various market sources indicate a price of 10.5 euros per share in Brookfield’s takeover bid. However, It should be noted that the North American company does not intend to pay the same price for type A and type B shares. Of course, the most reasonable option would be to pay the same premium, or in this case, a discount for each of them. In any case, we say that based on current prices and using A shares as a basis, the shares are still 2.35% more expensive than the possible purchase price.

In any case, although the operation is not closed, investors do not seem to be able to get the 15 euros per share with which they started the year. In fact, in the situation that Grifols faces, it does not seem unreasonable to us to accept a takeover offer that “only” 30% lower than where the year begantaking into account that it reached almost 50% below these prices.

Brookfield’s problem is that, although he found how to finance the operation and found nothing else scary in the books provided by the Grifols family, Now he will have to convince minority shareholders to pay them a price different from the price of the A shares, which were trading at 11.12 euros before today’s opening.

The company’s charter allows for different prices to be paid for class A and class B shares, and in fact they are listed at different prices (B shares started the day at €9.16 but are already down around 4% until they reach levels of €8,835). But in order for different prices to be paid, the holders of these B shares must accept it.

In this scenario, some market sources indicate that Brookfield and the founding Grifols family, which controls 30% of voting rights, plan to pay even less for the company’s Class B shares.

One of the largest shareholders of the company, The Brandeis Foundation knows this and that’s why it increased its participation on Friday. At a minimum, he wants to make Brookfield pay 11 euros for the title, and if not, he won’t accept.

Grifols stock has seen a lot of moves this year, fueled by allegations of accounting fraud in Gotham City and Brookfield’s takeover bid. In total, the stock accumulated a decline of more than 27%.