The Spanish pharmaceutical and chemical company Grifols has signed a share purchase agreement with the Chinese Tiancheng International Investment Limited regarding the acquisition of its 90% stake in Biotest. Grifols pays EUR 1.1 billion which means that Biotest’s equity is valued at EUR 1.6 billion. At the same time, Grifols makes a voluntary public takeover offer for all out-standing ordinary and preference shares of Biotest. The offer is EUR 43.00 per ordinary share and EUR 37.00 per preference share in an all-cash transaction.
Biotest is a German publicly listed healthcare company specialized in innovative hematology and clinical immunology providing plasma proteins and biological drugs. By joining forces, Biotest and Grifols want to increase plasma therapies availability, ensuring greater patient access to plasma medicines across the world.
The investment in cash represents a 23% premium to Biotest’s ordinary shares 30-day VWAP (volume weighted average price) and an aggregate consideration of approximately EUR 2 billion, including the assumption of Biotest’s net debt. In order to finance the transaction, Grifols has received a bridge financing commitment for EUR 2 billion unsecured bridge financing commitment from BofA Securities and plans to explore its financing options for unsecured debt.