Grifols
Even cheaper after Brookfield abandons take-out
Another short(er) analysis for a potential special situation, although one without a specific catalyst: more a value opportunity with a 3-5 years horizon!1
Founded in 1909 and headquartered in Barcelona, Grifols is a €5.5 billion Spanish biopharmaceutical company that produces plasma derivatives for therapeutic care. Plasma is the liquid portion of human blood and contains proteins and antibodies used by our immune system to fight diseases: in medicine it is used to treat immune deficiency, hemophilia, buns, and severe lung diseases.
Grifols has a dual share structure: Class A ordinary shares ($GRF.MC, 62% of the capital structure) and Class B preference shares ($GRF-P.MC, 38%). B shares have the same economic ownership as A shares with a slightly higher dividend but no voting power: they thus typically trade at a 20%-30% discount.2 The founding Grifols family still controls ~30% of the company, including ~8% through Scranton Enterprises.3