Grifols minority shareholders: ‘Brookfield’s takeover bid was low-ball and opportunistic’ | Companies

The Association of Minority Investors Grifols (AMG) has brought charges over a proposed takeover of pharmaceutical company Brookfield by companies from various members of the founding family. A deal that was called off this week, particularly due to differences in valuation. In addition to refinancing the debt, the Canadian fund offered 6.45 billion euros at a valuation of 10.50 euros for each A share. The company’s board of directors had previously warned that it would not recommend going ahead with a takeover at that price.

“We at AMG are convinced that the non-takeover offer that Brookfield intended to make to Grifols was at a bargain price and was also, in our opinion, opportunistic because it took advantage of the short bearish attacks that occurred following the Gotham City Research report,” Eduardo explained Breña, president of the association.

The manager indicated that there was a consensus between AMG and the rest of the participants. interested parties in which the takeover bid that Brookfield was considering was at a knock-down price because the intrinsic value of the Grifols share is much higher than €10.50 and the fall in price that followed Brookfield’s refusal to launch the takeover bid cannot be subject to any reason other than the sale large stakes in opportunistic and takeover funds, as well as short-term speculators.

According to the association, based on the results and analysis of the statements for the third quarter of 2024, as soon as the exit of opportunistic funds ends, we will return to normal life and the improvement of the company, and the results will be reflected in the price.

Grifols shares recovered this Friday after sharp declines in the last two days, when they fell 9% and 11% respectively, amid a renewed bearish offensive led by Gotham, which once again leveled accusations against the pharmaceutical company. for failure to provide information to Brookfield. Shares were up nearly 2% in afternoon trading after rising more than 3% in the early stages of the session.