(Bloomberg) -- Grifols SA needs to focus on financial restructuring and address corporate governance issues to win over investors after Brookfield Asset Management ditched plans to buy the drugmaker, according to Oddo analyst Juan Ros Padilla.
“We believe that the company’s problems are far from over: Interest burden remains high, and, in our view, further financial restructuring is needed,” Ros Padilla said in a note to clients, citing asset disposals, debt restructuring and fresh capital as options. He also said investor focus continues to be on corporate governance issues involving board members and an external law firm.
Brookfield on Wednesday announced that it was no longer pursuing a takeover of Grifols, triggering a 14% drop in the stock and ending months of talks. That followed the board’s rejection last week of an indicative offer by the asset manager, which valued Grifols at €6.45 billion ($6.8 billion).
Net financial expenses are eating as much as 45% of Grifols’ 2025 earnings before interest and taxes and implying an interest above 7%, according to Ros Padilla’s estimates.
“The company still has important corporate governance issues that have not been corrected or clarified,” he added. The company’s problems are “not yet fully reflected in the share price,” he said.
--With assistance from Macarena Muñoz.
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