Bankinter | Grifols could be negotiating a 2 billion euros capital hike (c. 18% of its current capitalisation) with various funds. The objective is to cut its debt which is equivalent to 6.9x EBITDA, according to a daily newspaper.
Grifols’ share price took a hit this morning on the IBEX 35, falling as much as 13%.
Bankinter analyst team’s view:
Negative news. If this rumour is correct, the capital increase would be made at a discount to the current share price. One of our concerns is Grifols’ leverage (5.4x NFD/EBITDA at end-2021). This reflects an agressive acquisition strategy financed with debt.
In Q4 2021, after announcing the purchase of the German firm Biotest for 2 billion euros, the main rating agencies cut Grifols’ debt rating (Moody’s B1, with negative outlook from Baa3; S&P BB- with negative outlook from BB). We maintain a cautious outlook and leave our Target Price unchanged at 17 euros/share, reiterating our Neutral stance.
