Grifols Shares Rise on $1.76 Billion Sale of 20% Stake in Shanghai RAAS to Pay Down Debt

By David Sachs

Grifols shares jumped Friday after the pharmaceutical company said it will sell a sizable stake in a Chinese medicine developer for $1.76 billion in order to pay down debt.

The Barcelona-based group said Friday that it will sell a roughly 20% stake in Shanghai RAAS Blood Products to Haier Group, a Chinese appliance company with a biomedical unit, for 12.5 billion Chinese yuan. Grifols will use the proceeds to pay off debt, it said.

At 1417 GMT, shares in Grifols were up 9.4% to EUR15.57, having risen as high as EUR15.92.

Grifols will still hold an approximate stake of 6.6% in Shanghai RAAS and a seat on its board of directors following the transaction, which is subject to standard regulatory closing conditions, the company said.

"Grifols and Haier envision broad cooperation to contribute to China's growing and developing healthcare system," Grifols said.

Shanghai RAAS's 45% stake in Grifols Diagnostic Solutions and 40% voting rights in the company will remain the same.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

December 29, 2023 09:44 ET (14:44 GMT)

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