After confirming this Tuesday that the offer being considered for Grifols is 10.5 euros for the A shares (with voting rights) and 7.62 euros for each B share (without said right), without this being linked to carrying out Indeed, such an offer would leave the ball in the court of the shareholders, who could accept, or not, these conditions. What can you rely on to make this eventual decision?
What analysts say, for the most part, is that This hypothetical offer undervalues the company Catalan and, consequently, would go against the interests of the potential seller. And almost all the analysis houses that follow Grifols, 82% of them calculate target prices above 10.5 euros mentioned.
The average valuation is currently in the 16.5 euroslevel that is more than 50% above the price of the alleged takeover bid. This is the main reason why from within the company they have recommended to its Board of Directors to reject this possible offer as well as to the company’s shareholders.
However, on the stock market its shares have been priced in the opposite way, assuming that this will be the price that shareholders will accept for its shares of the Catalan company since since the first rumors regarding the price emerged this Monday, its titles have dropped more than 6%up to the 10.4 euros they are approaching now. There are only three analysis houses, Oddo, Deutsche Bank and Alantra, that believe that the Catalan company’s shares are worth less than what Brookfield is valuing.
From Banco Sabadell they agree with the Grifols Transaction Committee that the 6,450 million “undervalue the value of the assets and the value creation potential of the company at a time of clear recovery of operating results and with positive prospects given the potential of the product pipeline.”
This news is “negative” for Bankinter experts, since it “reduces the possibility of a takeover unless the fund is willing to improve its offer,” they add. “If Brookfield withdraws, shares could fall to the recent lows of March,” they continue. “We maintain our thesis that the option of there being a takeover bid for Grifols is very unlikely and we reiterate our recommendation to sell,” they conclude.
“Despite this rejection, we see it likely that Brookfield will continue forward taking into account the time and effort dedicated to the company’s due diligence as well as to obtain the 11,000 million necessary to refinance the company’s debt,” they point out at Banco Sabadell. “However, we do not rule out that the takeover bid is launched at a higher price,” they conclude.
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