Grifols and Shanghai RAAS have reached a strategic alliance agreement to manufacture, market and develop plasma products and transfusion diagnostic solutions in the Chinese market in compliance with international quality and safety standards. As part of their strategic alliance, Grifols will acquire a 26.2% stake in Shanghai RAAS capital to Grifols in exchange for a non-majority share in Grifols Diagnostics Solutions. Grifols will maintain operating, political and economic control of Grifols Diagnostics Solutions. Upon completion of the transaction, Grifols will become the second-largest shareholder in Shanghai RAAS behind Creat Group Co. Ltd, which owns a 26.7% share. RAAS China Ltd will hold a 25.8% stake, with the remaining capital distributed among institutional investors and minority shareholders. Grifols will appoint three members on the Shanghai RAAS board of directors, which includes nine members. It will also have the right of veto in instances such as share issuance, divestment of material assets, mergers and bylaw amendments, among others, in addition to subscription rights in possible capital increases. Shanghai RAAS will have a member on the GDS board. No external financing is required to fund the transaction, Grifols said. The Grifols Diagnostics Solutions valuation is $4,279B and the price per share of Shanghai RAAS is RMB 7.50. The transaction is subject to approval by the Chinese and U.S. regulatory authorities. It is expected to close in the second half of 2019.
