GRFS - Grifols: Going Private? Brookfield On The Scene

2024-07-16 06:59:15 ET

Summary

• Grifols faces challenges with high debt levels and difficulty in refinancing, leading to a downgrade in corporate rating by Moody's.
• Q1 results were not encouraging, especially in terms of cash generation. The focus is now on the Q2 results.
• Is going private the solution? Brookfield Asset Management is in talks with Grifols' majority shareholders to potentially privatize the company.
• The market is navigating between optimism over Brookfield's offer and setbacks from credit rating agencies and banks. What scenarios are opening up from now on?

In my previous article on Grifols ( GRFS ), I presented a valuation of the Spanish pharmaceutical company. One of the reasons for remaining cautious was the high level of indebtedness and the difficulties in refinancing the debt, both due to its cost and its maturity schedule....

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