In a surprising turn of events, Grifols SA, a pharmaceutical producer based in Barcelona, has disclosed that its founding family and asset manager Brookfield have expressed interest in acquiring and delisting the company. This announcement follows a recent short-seller attack that resulted in a significant loss of market value for Grifols. As a result, the company's shares experienced a remarkable surge, recording their biggest increase in four months.

The Barcelona-based firm revealed in a regulatory filing on Monday that an agreement has been reached between Brookfield and the Grifols family to evaluate the potential for a joint takeover bid. The proposal aims to acquire all outstanding shares of the company, ultimately taking it private. Grifols, which currently holds a market value of €5.5 billion ($6 billion), remains uncertain about the transaction's occurrence and its terms.

Upon the lifting of a trading suspension around noon on Monday, Grifols' shares skyrocketed by as much as 14.5%, marking its most substantial jump since March 8. This takeover offer is the latest development in a crisis that began in January when the company came under attack from short-seller Gotham City Research. In response, Grifols took measures to assuage investor concerns, including replacing all family members in executive positions, appointing an external chief executive officer, and nominating a new chief financial officer.

Before this news, Grifols' stock had plummeted by 36% since the Gotham report was published, wiping away some €3.2 billion from the company's market value. However, Grifols has vehemently denied any allegations of wrongdoing. For the Grifols family, this offer comes as a relief, allowing them to steer clear of the tribulations of financial markets and focus solely on the business. However, long-term shareholders, like portfolio manager Xavier Brun from Trea Asset Management, express mixed feelings about the prospect of the family's departure, highlighting the enduring loyalty towards the company.

It is worth noting that approximately 30% of Grifols is controlled by family members and a group of associates through various entities. At present, three family members and a long-term lawyer to the family hold positions on the company's 13-member board. This development marks a significant departure from the company's long-standing history of being exclusively managed by the family, as an outsider assumed the CEO position for the first time in 2023.

Following the announcement of the potential takeover, Grifols' high-yield bonds experienced a surge in value. Bloomberg data indicates that the notes due in October 2028 observed the largest daily gain since their issuance, rising by 5.6 cents on the euro to reach 89.4 cents. Grifols, burdened with a substantial debt load, has been proactively reassuring investors of its ability to generate sufficient cash to meet its obligations.

Analysts, such as Charles Pitman from Barclays Bank Plc, foresee potential operational improvements should the takeover proceed, allowing the new management team to focus on enhancing business performance. However, given the company's historical weak track record with free cash flow and the lack of confidence in previous management, Pitman does not anticipate a significant premium to be offered in the potential deal.

Should Brookfield successfully acquire Grifols, it would contribute to the increasing interest of private equity firms in blood plasma products in recent years. This announcement comes amidst a period of market turmoil for Grifols, and shareholders and investors will undoubtedly be closely monitoring the progress and eventual outcome of the takeover bid.