Grifols closes sale of 20% of Shanghai RAAS to Haier for $1,800m, capital gain could reach €250m

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Bankinter: The capital gain amounts to approximately €250M. The proceeds of this transaction will be used to reduce debt. Grifols and Haier undertake not to transfer SRAAS shares for a period of 3 years. In relation to Grifols Diagnostic Solutions (GDS), in which SRAAS holds a 40% stake and Grifols a 60% stake, provided that Haier holds a 10% stake in SRAAS in 2024-2028, Grifols has committed to (i) achieve an aggregate EBITDA of $850M, and in case of failure to achieve the target to compensate SRAAS with cash in 2029 for a multiplier resulting from the shortfall. According to Grifols, GDS has always achieved this EBITDA in the past; (ii) Grifols will ensure that GDS distributes annual dividends with a pay-out of no less than 50%. Grifols has pledged its remaining 6.6% in SRAAS in favour of Haier, to secure the cash pooling agreement between GDS (creditor) and Grifols (debtor).

Opinion of Bankinter’s research team:
Expected news and on schedule, but with negative surprise after learning that there is a requirement for a minimum EBITDA, distribute dividends and the pledge of the remaining capital held by Grifols in SRAAS in favour of Haier. The share reacted yesterday to the news with a fall of 2.5% before recovering and closing up 0.6%.

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