The National Securities Market Commission (CNMV) analyzes aspects surrounding Grifols, which include operations with companies such as BPC (Biotest) and Haema, relationships with plasma marketers and links with Scranton Enterprises, the family holding company that owns of 8.6% of the pharmaceutical company’s capital.
CNMV sources indicate that the supervisor “is looking at everything to assess the situation.” “The important thing is that the veracity of the accounts of a listed company has been questioned,” they say.
The investigations are currently focused exclusively on Grifols, but if they do not lead to significant aspects, the supervisor could turn to the bearish Gotham City Research fund, with which there has been no contact.
After the sharp fall on Tuesday and the slight recovery on Wednesday, the company’s shares fell 6.8% today and have accumulated declines of 22% since Gotham assured that its book value is zero. The bearish fund has already closed almost all its positions in the company, which is now capitalized at 6.7 billion euros.
S&P calls for “prudence”
The Grifols case also tests the market credibility of the company and the bearish fund. At a press conference held this Thursday in Madrid by Standard & Poor’s (S&P) to talk about the forecasts for Spain, more than half a dozen questions had to do with Grifols.
“We read all the reports,” said the head of corporate debt for the EMEA region of S&P, Leandro de Torres, when asked about Gotham and Grifols. “We read them, but with great caution because third parties also have their own interests,” he warned. S&P assigns a stable B+ rating to the company.
Grifols relationship with Scranton
Gotham places emphasis in its report on the Dutch company Scranton, owned by Grifols executives and members of the eponymous family. The bearish fund highlights that Grifols consolidates the results of two companies, BPC and Haema, owned by the family holding company.
The purchase of these two companies, according to the Gotham report that Grifols has been refuting in communications to the CNMV, was made thanks to a loan from the pharmaceutical company to Scranton of 95 million euros in 2018.