Trio advises on Haier, Grifols’ deal in blood products firm

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Shanghai RAAS stake sale
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Three firms are advising on the RMB12.5 billion (USD1.73 billion) sale of a stake in Shanghai RAAS between Spanish drugmaker Grifols and China home appliance giant Haier Group.

Haier Group will acquire a 20% stake in the Chinese blood products manufacturer from Grifols, which is set to be finalised in June.

Haier Group, listed in Shanghai, Hong Kong and Frankfurt, has appointed Clifford Chance as legal counsel. Beijing partner Bai Yong is leading the Clifford Chance team with support from lawyers in five overseas offices.

Overseas partners include Renee Latour, Timothy Cornell and Brian Concklin based in Washington in the US; Jaime Almenar and Miguel Odriozola from Madrid in Spain; Katrin Schallenberg from Paris in France; and managing partner Mustapha Mourahib from Casablanca in Morocco.

The Spain and US-listed Grifols, meanwhile, has appointed Osborne Clarke and JunHe as its legal counsel.

Grifols plans to use proceeds from the sale to reduce debt due in 2025, the company said. Credit ratings agency, S&P Global, added that the company has around €1.8 billion (USD1.96 billion) of debt due next year, involving senior secured and unsecured notes.

After the sale, Grifols will retain around 6% of Shanghai RAAS and a seat on its board of directors.

In 2020, Grifols acquired a 26.2% stake from Shanghai RAAS through a cross-border share swap deal. The Shenzhen-listed company in return received 45% of economic rights and 40% of voting rights in the Spanish company’s subsidiary Grifols Diagnostic Solutions (GDS).

The rights Shanghai RAAS holds in GDS will remain the same after the recent stake sale.

The share-swap deal in 2020, valued at around USD1.9 billion, was the first of its kind involving a privately-owned listed Chinese company and a listed overseas company.

Grifols is a recognised leader in plasma medicines, transfusion diagnostics and pharmaceutical specialties for hospital use, while Shanghai RAAS is a leading Chinese company in the plasma-derivatives sector.

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