Grifols Says Due Diligence Done, Shanghai RAAS Stake Sale To Go Ahead

Grifols’ $1.8 billion sale of a 20% stake in Shanghai RAAS will proceed after a due diligence process concluded “satisfactorily”, the Spanish drug maker said on Friday.

Grifols said the sale to Haier Smart Home, announced in late December, will be completed by the end of the first half of this year provided all the regulatory hurdles are cleared.

Grifols, which produces drugs made with blood plasma, had said it would use the proceeds to reduce its debt.

The company has lost about half its market valuation since early January when short-seller Gotham City Research issued a report questioning its accounting and its debt levels. Grifols has dismissed the report, insisting its data is correct, and has sued Gotham City.

(Reporting by Inti Landauro; editing by Jason Neely)