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  • Gotham City Research LLC

Grifols SA: The BPC Value Transfer (a.k.a. How an advance payment becomes a loan, Part II)

Gotham City Research published Grifols SA: How an advance payment becomes a loan Part I on March 6th 2024, which detailed how we believe Grifols moves money from Grifols shareholders to Scranton, via Haema AG, while avoiding calling the transaction a loan. 


In this note we will pick up where we left off and turn our attention to BPC Plasma. We believe, based on our understanding and analysis, that in the case of BPC we have seen the same actions, with a twist  – we believe that BPC over the years has lent funds it received from a third party (most likely Grifols) to Scranton, as we saw Haema do.


However, unlike Haema, BPC has since declared a dividend to Scranton. Instead of paying this dividend in cash, BPC has written off loans in the amount of ~EUR 266mn it made to Scranton.  This leads us to believe that these loans were never intended to be repaid by Scranton.  We believe almost all of this sum has been suspiciously moved from Grifols shareholders to the benefit of Scranton shareholders - in effect, giving the appearance of being transferred incorrectly.  The fact that there are Scranton shareholders on the board of Grifols, as this transaction took place, seems like a total failure of corporate governance, in our opinion.


To learn more, please read our report:


Grifols SA - The BPC Value Transfer (aka How an advance payment becomes a loan Part II)
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