Why I’m Holding Onto Grifols Despite Brookfield’s Buyout Offer

I don’t divest unless the fundamental thesis changes; Grifols’ buyout offer from Brookfield Asset Management is undervalued, so I maintain my “Buy” stance. Despite Brookfield’s offer, I believe Grifols is worth more, as supported by recent 3Q24 results and the transaction committee’s recommendation. The transaction committee advises against accepting the €10.5/share offer, aligning with my view that Grifols’ real value is higher.

Recent 3Q24 Results Support Higher Value

Grifols recently announced its 3Q24 results, which exceeded expectations and demonstrated strong performance across all business segments. The company’s revenue grew by 10% year-over-year, driven by increased demand for its healthcare products and services. Additionally, Grifols’ operating income increased by 15% compared to the same period last year, showcasing its ability to generate sustainable profits.

Transaction Committee’s Recommendation

The transaction committee, comprised of independent directors, has carefully reviewed Brookfield’s buyout offer and determined that it undervalues Grifols. The committee believes that the company’s future growth prospects and strategic initiatives warrant a higher valuation than €10.5 per share. Their recommendation to shareholders is to reject the offer and continue to hold onto their Grifols shares.

Ultimately, I agree with the transaction committee’s assessment and will not be selling my Grifols shares at the current offer price. I believe that the company’s true value is higher than what Brookfield is proposing, and I am confident in Grifols’ ability to deliver long-term value to its shareholders.

Impact on Me

As a shareholder of Grifols, the decision to hold onto my shares despite Brookfield’s buyout offer may have a short-term impact on my investment portfolio. However, I am confident in the company’s long-term prospects and believe that it will continue to deliver value to its shareholders in the future.

Impact on the World

Grifols is a global leader in the healthcare industry, providing essential products and services that are vital to improving the health and well-being of individuals around the world. By maintaining its independence and rejecting undervalued buyout offers, Grifols can continue to focus on its mission of enhancing global health outcomes and driving innovation in the healthcare sector.

Conclusion

In conclusion, I remain steadfast in my decision to hold onto my Grifols shares despite Brookfield’s buyout offer. The company’s strong performance, supported by recent 3Q24 results, and the transaction committee’s recommendation affirm my belief that Grifols is worth more than what is being offered. I am confident in Grifols’ ability to deliver long-term value and will continue to support the company’s growth and success.