Grifols SA (GRFS) Stock

Mason Capital Management LLC, which manages funds holding about 2.1% of Grifols S.A. shares, has reached out to the Grifols Board of Directors. They are asking for the release of key information about Tomas Daga, who has been on the Board for nearly 25 years and is a close advisor to the Grifols family. This request aims to provide shareholders with more clarity.

MADRID--(BUSINESS WIRE)--The law firm Araoz y Rueda has been hired by various international and Spanish organizations (the “Clients”) that together own 5.65% of A shares and 3.88% of B shares (including ADRs) in Grifols, S.A. As of the closing prices on 29 November 2024, the total value of the Clients' investment in Grifols is €275 million. The Clients express their gratitude to the Transaction Committee for their full commitment to Brookfield and strongly back the decision.

On Wednesday, Grifols SA GRFS announced that it has stopped talks with Brookfield Capital Partners (UK) Limited regarding a possible acquisition.

I only sell my investments if the main reasons for buying them change. I think Brookfield Asset Management's buyout offer for Grifols is too low, so I still recommend buying the stock. The recent 3Q24 results and the transaction committee's advice against accepting the €10.5 per share offer support my belief that Grifols is worth more.

Brookfield has chosen to withdraw its buyout proposal for GRFS due to differences in the company's valuation.

On Wednesday morning, Grifols' shares were declining after Bloomberg announced that the Canadian fund Brookfield is thinking about abandoning its takeover plan for the Spanish pharmaceutical company.

According to GRFS, Brookfield's proposal to purchase all of its shares for 6.45 billion euros does not accurately reflect GRFS's future opportunities and long-term value.

Mason Capital Management LLC, an investment advisor managing about 2.1% of Grifols S.A. shares, has sent a letter to the company's Board of Directors. In this letter, Mason highlighted the company's governance issues, which have caused significant losses for shareholders and led to speculation about a potential buyout by Broo affiliates.

Grifols, S.A. is currently undervalued and has a higher worth than its market value, making it a good investment even without a possible buyout from Brookfield. The company is a leader in the global plasma market, showing strong growth in its immunoglobulin and albumin areas, along with a strong infrastructure and wide geographical presence. Although it faces competition and new technologies, Grifols has strong fundamentals, with promising earnings predictions for 2024 and improving profit margins.