Grifols falls again on the stock market after securing the sale of its stake in Shanghai Raas
Shares of the blood products group regained investor confidence early this morning following the release of a devastating US bear fund report. Gotham City investigation, where he is accused of “fabricating” his reports., but the effect was short-lived. Grifols shares fell 0.11% in mid-session trading. Late last Sunday, Grifols made it clear to the National Securities Market Commission (CNMV) that Gotham City Research’s information would not affect the sale of 20% of its subsidiary Shanghai Raas. “We continue to work towards closing the transaction as originally proposed,” Haier Group Corporation Vice President Lisia Tan said of the transaction, worth about 1.6 billion euros, which will be completed in the first half of 2024.
Titles in just four days Grifols lost 38% of their value, about 4.8 billion euros.. The decline began last Tuesday, the day the fund’s bearish report was released. His titles fell by 25.9%, although they fell to 50%. It recovered some of its losses Wednesday, rising 12%, but fell again Thursday, down 16.2% after a conference call with investors to clarify doubts about Gotham City Research. In addition, the same day coincided with an erroneous mention of the pharmaceutical company published by Reuters, which claimed that Santander had opted for the sharpest reduction in Grifols’ target price, setting it at 9.90 euros per share, which is the figure. This was later denied by the banking institution and corrected by the agency.
Gotham pilloried sale of Grifols to Scranton Enterprisesinvestment vehicle of the founding family, two companies in 2018, BPC and Haema, and consider the benefits both in the group and in Scranton. At the same time, the bearish fund believes that the pharmaceutical company’s reported debt is understated by at least 920 million euros, mainly due to financial movements between the Catalan company and Scranton, which owns 8.4% of Grifols. CNMV is investigating ties between both companies and has asked the company to disclose the identity of the 22 investors in Scranton, three of whom belong to the founding family, Grifols Executive President and CEO Thomas Glanzmann said during the meeting. with investors. .
“Rooms for Improvement”
During the conference call, the company’s executive president and CEO Thomas Glanzmann acknowledged Opportunities for improved management and communication, but criticized Gotham’s published document. “Gotham sought only capital gains and acted out of its own self-interest, and used information to suggest irregularities that had already been reviewed and approved by regulators and the auditor,” he defends.
The Minister of Economy, when asked whether he did not trust the version of the Catalan company Grifols, presented this Thursday at a conference with analysts, replied: The Corps said it is in constant contact with the agency “with the authority to verify the information.” and that it must ensure that all actions of listed companies comply with the law and ensure the proper functioning of our securities market. “We are in contact with the CNMV and We hope that they will analyze this information, make decisions and discover actions that they deem appropriate,” concluded Corpo.