Haiyingkang (Qingdao) Medical Technology Co., Ltd. entered into share purchase agreement to acquire 20% equity stake in Shanghai RAAS Blood Products Co., Ltd. (SZSE:002252) from Grifols, S.A. (BME:GRF) for CNY 12.5 billion on December 29, 2023. Under the share purchase agreement, Grifols will sell approximately a 20% equity stake in SRAAS to Haier for CNY 12.5 billion (approximately $1.8 billion) cash consideration at a price of CNY 9.405 per share, which represents a premium of 14.96% to SRAAS? volume weighted average price over 20 prior trading days, which is CNY 8.181. Post completion of the acquisition, Grifols will still retain a significant ~6.58% stake in SRAAS as well as a seat on its Board of Directors. SRAAS? 45% economic and 40% voting rights in Grifols Diagnostic Solutions (GDS), agreed to in 2020, stay the same. As part of the share purchase agreement, Grifols and SRAAS will lengthen their exclusive albumin distribution agreement through at least the next 10 years, and possibly 20, with guaranteed minimum supply volumes over the next five (2024-2028). Both parties, Grifols and Haier, commit not to transfer any portion of their shares within three years following the completion of the transaction.

The transaction is subject to customary closing conditions, including regulatory approvals. As of February 16, 2024, The National Markets and Competition Commission approved the transaction. As of April 10, 2024, the transaction is expected to close in H1 2024. The company received notices from Haier Group and Gilbert that both parties have fulfilled the necessary domestic and overseas government approval procedures for this transaction. The proceeds from this divestment will be allocated to reduce secured debt obligations.

Grifols retained Osborne Clarke, S.L.P. and JunHe LLP. as legal advisors. Banco Santander, S.A., Research Division and Nomura Securities International, Inc. serves as the lead financial advisor to Grifols. PricewaterhouseCoopers China Limited, Legal Advisory Arm acted as legal and China International Capital Corporation Limited (SEHK:3908) acted as financial advisor to Haiyingkang (Qingdao) Medical Technology Co., Ltd. Dayu Man, Renee Latour, Timothy Cornell, Brian Concklin, Jaime Almenar, Miguel Odriozola, Begoña Barrantes, Carme Briera, Katrin Schallenberg, and Mustapha Mourahib of Clifford Chance acted as legal adviser to Haier Group.

Haiyingkang (Qingdao) Medical Technology Co., Ltd. completed the acquisition of 20% equity stake in Shanghai RAAS Blood Products Co., Ltd. (SZSE:002252) from Grifols, S.A. (BME:GRF) on June 18, 2024. The two companies extend their exclusive albumin distribution agreement through the next 10 years ? with guaranteed minimum volumes between 2024 and 2028 ? and SRAAS has the option to prolong it through 2044. China?s demand for albumin is significant and the demand is expected to grow significantly in the coming years. Grifols will use all proceeds to comply with its commitment to deleverage.