Grifols Sells 20% Stake in Chinese Medicine Developer

Barcelona-based pharmaceutical company, Grifols, has announced plans to sell a 20% stake in Shanghai RAAS Blood Products for $1.76 billion, as part of its strategy to reduce debt.

Grifols has revealed that it will sell a sizable stake in Shanghai RAAS Blood Products to Haier Group, a Chinese appliance company with a biomedical unit. The 20% stake will be sold for 12.5 billion Chinese yuan, and the funds generated will be used to pay off Grifols' debt. This move has resulted in a surge in Grifols' shares, which have increased by 9.4% to EUR15.57, with a peak of EUR15.92.

Despite the sale, Grifols will still retain a 6.6% stake in Shanghai RAAS and a seat on its board of directors. The transaction is subject to standard regulatory closing conditions.

Grifols' statement emphasizes the shared vision between the two companies, stating that Grifols and Haier aim to collaborate and contribute to China's growing healthcare system.

In other unaffected areas, Shanghai RAAS will maintain its 45% stake in Grifols Diagnostic Solutions, as well as its 40% voting rights in the company.