Gotham directly points to Thomas Daga as the problem with Grifols’ control
Range of management problems Grifols tapers to the figure of a consultant Thomas Daga. The last person to directly point to it as a key in this sense was Gotham City Explorationwhose latest (for now) note about the company again caused panic among investors, causing the share price to fall below seven euros, something that has not happened since the end of 2011.
Since the bear bottom triggered the company’s biggest crisis as a listed company, early last January corporate governance Grífols is in the spotlight of the market as one of the factors causing massive capital flight value, which has since been estimated at almost 3.2 billion euros in terms of capitalization stock market
Conflict of interest
This Wednesday, Gotham City once again sowed panic in Grifols with another report, much shorter than the first, in which, in addition to a very technical note about accounting practicehighlighted two aspects of corporate governance that have attracted particular attention.
Firstly, the fact of insisting on the existence of numerous conflicts of interest between the company and the various parties involved, among which he mentions the CEO (currently also the President, Thomas Glanzmannbefore Nacho Abia relieve him of the first of his functions starting in April), members of the founding family and Doug’s advisor, the only one he specifically mentions by name.
Thomas Daga, director of Grifols since 2000 and founding partner of Osborne Clarke in Spain / CG
Following the collapse late last week caused by the presentation of annual results that had not yet been audited, Global Chronicle echoed the general market sentiment when it came to pointing to the Grifols’ trustee as the center of the company’s management problems, which is quickly eroding trust.
Daga is a paradigmatic example of a figure that Gotham loosely describes as giving rise to conflicts of interest: “They act as shareholders, directors, counterparties, creditors, consultants and debtors to Grifols, many times at the same time.”
Judge and party in unison
In Daga’s case, his role as a director of the company (who has already lost his independent status due to his long tenure in this post) is intertwined with the role of a shareholder Scranton Enterprisesa partner with whom the pharmaceutical company carried out related transactions at the center of the dispute.
And also as an advisor as a founding partner of a British firm in Spain. Osborne Clark, who defended the company’s interests in major corporate transactions it has undertaken in recent years. The second point that caught the market’s attention was the fact that the questions with which “Gotham” concludes the note are addressed to independent directors.
Image of the Grifols headquarters in Sant Cugat del Vallès (Barcelona)
Controversial Fund founded and managed Daniel Yu seems to be well aware controversy that this situation has developed within the main executive body of the blood product manufacturer, in which independent members, currently 50% of the total, have taken the lead in the changes that have taken place in recent weeks. control of Grifols.
The signing of Nacho Abia and the departure of members of the founding family from any executive functions were the most notable, although, as this newspaper also noted, insufficient in the eyes of the market.
Various threats
In fact, Gotham also cites a note from the analyst firm on the matter. Keplerwhich emphasizes that “transactions between related parties are themselves controversial.”
The atmosphere of uncertainty is compounded by other threats, such as the emergence of new reports about Gotham, given that the report published this Wednesday contains the alarming “Part I” in its main title, as well as a possible rating downgrade by the agency. Moody as a result of the accounts episode.
Financial stress
An opportunity that, if it materializes, will further complicate Grifols’s financial situation due to the increase in the cost of its heavy debt and the problems it may create when entering the market to find funds to repay it.
Overall, the company has already accumulated declines of more than 55% year-to-date and 32% in just one week.
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