Mason Capital Management Sends Letter to Spanish National Securities Market Commission Regarding Lack of Transparency by Grifols
Mason Capital Management, holding approximately 2.5% of Grifols (GRFS) class A shares, has sent a letter to the Spanish National Securities Market Commission (CNMV) highlighting concerns about transparency issues at Grifols. The letter focuses on three main areas of concern:
1. Related-party transactions involving Board member Tomas Daga and his firm Osborne Clarke Spain, which has been the primary advisor on Grifols transactions since 2014
2. Questions about Grifols' internal legal department structure, noting only 14 employees all located in the US rather than at headquarters in Barcelona
3. Concerns about a December 2024 €1.3bn bond issuance with a 7.125% interest rate, which reportedly includes special clauses benefiting Brookfield at shareholders' expense
Mason requests detailed disclosure of fees paid to Osborne Clarke Spain, Daga's ownership stakes, and the bond indenture terms, arguing that these governance issues are destroying shareholder value.
Mason Capital Management, che detiene circa il 2,5% delle azioni di classe A di Grifols (GRFS), ha inviato una lettera alla Commissione Nazionale del Mercato dei Valori Spagnola (CNMV) evidenziando preoccupazioni riguardanti i problemi di trasparenza presso Grifols. La lettera si concentra su tre principali aree di preoccupazione:
1. Operazioni con parti correlate che coinvolgono il membro del Consiglio Tomas Daga e la sua azienda Osborne Clarke Spagna, che è stata il principale consulente nelle transazioni di Grifols dal 2014
2. Domande sulla struttura del dipartimento legale interno di Grifols, sottolineando che ci sono solo 14 dipendenti, tutti situati negli Stati Uniti e non presso la sede centrale a Barcellona
3. Preoccupazioni riguardo all'emissione obbligazionaria di 1,3 miliardi di euro prevista per dicembre 2024, con un tasso d'interesse del 7,125%, che includerebbe clausole speciali a favore di Brookfield a spese degli azionisti
Mason richiede una divulgazione dettagliata delle commissioni pagate a Osborne Clarke Spagna, delle partecipazioni di Daga e dei termini del contratto obbligazionario, sostenendo che queste questioni di governance stanno distruggendo il valore per gli azionisti.
Mason Capital Management, que posee aproximadamente el 2.5% de las acciones clase A de Grifols (GRFS), ha enviado una carta a la Comisión Nacional del Mercado de Valores de España (CNMV) destacando preocupaciones sobre los problemas de transparencia en Grifols. La carta se centra en tres áreas principales de preocupación:
1. Transacciones con partes relacionadas que involucran al miembro del Consejo Tomas Daga y su firma Osborne Clarke España, que ha sido el principal asesor en las transacciones de Grifols desde 2014
2. Preguntas sobre la estructura del departamento legal interno de Grifols, señalando que solo hay 14 empleados, todos ubicados en los EE. UU. en lugar de en la sede en Barcelona
3. Preocupaciones sobre una emisión de bonos de 1.3 mil millones de euros prevista para diciembre de 2024, con una tasa de interés del 7.125%, que incluiría cláusulas especiales que benefician a Brookfield a expensas de los accionistas
Mason solicita una divulgación detallada de los honorarios pagados a Osborne Clarke España, de las participaciones de Daga y de los términos del contrato de bonos, argumentando que estos problemas de gobernanza están destruyendo el valor para los accionistas.
메이슨 캐피탈 매니지먼트는 그리폴스(GRFS) 클래스 A 주식의 약 2.5%를 보유하고 있으며, 스페인 국가 증권 시장 위원회(CNMV)에 투명성 문제에 대한 우려를 강조하는 편지를 보냈습니다. 이 편지는 세 가지 주요 우려 사항에 초점을 맞추고 있습니다:
1. 이사회 구성원 토마스 다가와 그의 회사 오스본 클락 스페인 간의 관련자 거래로, 이 회사는 2014년 이후 그리폴스 거래의 주요 자문 역할을 해왔습니다.
2. 그리폴스의 내부 법무 부서 구조에 대한 질문으로, 직원이 14명뿐이며 모두 미국에 위치하고 본사는 바르셀로나에 있지 않다는 점을 지적했습니다.
3. 2024년 12월에 예정된 13억 유로 규모의 채권 발행과 관련된 우려로, 이 채권은 특수 조항이 포함되어 있어 주주들에게 불리한 조건으로 브룩필드에게 혜택을 주는 것으로 전해졌습니다.
메이슨은 오스본 클락 스페인에 지급된 수수료, 다가의 소유 지분 및 채권 인지서 조건에 대한 상세한 공개를 요청하며, 이러한 거버넌스 문제가 주주 가치를 훼손하고 있다고 주장했습니다.
Mason Capital Management, détenant environ 2,5 % des actions de classe A de Grifols (GRFS), a envoyé une lettre à la Commission nationale du marché des valeurs mobilières espagnole (CNMV) soulignant des préoccupations concernant des problèmes de transparence chez Grifols. La lettre se concentre sur trois principaux domaines de préoccupation :
1. Transactions avec des parties liées impliquant le membre du conseil Tomas Daga et sa société Osborne Clarke Espagne, qui est le principal conseiller sur les transactions de Grifols depuis 2014
2. Questions concernant la structure du département juridique interne de Grifols, notant qu'il n'y a que 14 employés, tous situés aux États-Unis et non au siège à Barcelone
3. Préoccupations concernant une émission obligataire de 1,3 milliard d'euros prévue pour décembre 2024, avec un taux d'intérêt de 7,125 %, qui inclurait des clauses spéciales profitaient à Brookfield aux dépens des actionnaires
Mason demande une divulgation détaillée des frais payés à Osborne Clarke Espagne, des participations de Daga et des conditions du contrat obligataire, affirmant que ces problèmes de gouvernance détruisent la valeur pour les actionnaires.
Mason Capital Management, das etwa 2,5 % der Klasse-A-Aktien von Grifols (GRFS) hält, hat einen Brief an die spanische Nationalkommission für Wertpapiermarkt (CNMV) gesendet, in dem Bedenken hinsichtlich von Transparenzproblemen bei Grifols geäußert werden. Der Brief konzentriert sich auf drei Hauptbereichen der Besorgnis:
1. Transaktionen mit nahestehenden Personen, die den Vorstand Tomas Daga und sein Unternehmen Osborne Clarke Spanien betreffen, das seit 2014 der Hauptberater für die Transaktionen von Grifols ist
2. Fragen zur Struktur der internen Rechtsabteilung von Grifols, die nur 14 Mitarbeiter hat, die alle in den USA und nicht im Hauptsitz in Barcelona ansässig sind
3. Bedenken hinsichtlich einer Anleiheemission von 1,3 Mrd. Euro im Dezember 2024 mit einem Zinssatz von 7,125 %, die Berichten zufolge spezielle Klauseln beinhaltet, die Brookfield auf Kosten der Aktionäre begünstigen
Mason fordert eine detaillierte Offenlegung der an Osborne Clarke Spanien gezahlten Gebühren, der Beteiligungen von Daga und der Bedingungen des Anleihevertrags und argumentiert, dass diese Governance-Probleme den Wert für die Aktionäre zerstören.
- None.
- Potential conflicts of interest with Board member Tomas Daga serving dual roles
- Lack of proper internal legal department structure at headquarters
- Above-market interest rate (7.125%) on €1.3bn bond issuance
- Alleged preferential treatment to Brookfield in bond terms at shareholders' expense
- Inadequate disclosure of related-party transactions
- Destruction of shareholder value through potentially conflicted transactions
Insights
The letter from Mason Capital reveals severe governance issues and potential conflicts of interest at Grifols that warrant immediate attention. The most concerning aspects include Board member Tomas Daga's dual role as both director and legal advisor through Osborne Clarke Spain, which creates significant conflicts in M&A transactions. The absence of a proper internal legal department at headquarters represents a critical control weakness for a
The questionable
The market implications of these governance concerns are substantial. The alleged preferential bond terms potentially cost shareholders millions in excess interest payments, while the concentrated legal advisory relationship may have contributed to value-destructive transactions. The lack of transparency around related-party transactions and Daga's compensation through Osborne Clarke creates an information asymmetry that likely contributes to a valuation discount.
The
The governance structure described raises serious regulatory compliance concerns. The concentration of legal advisory services through a board member's firm creates inherent conflicts that may violate basic corporate governance principles. The absence of an independent internal legal department at headquarters is particularly troubling for a dual-listed company subject to both Spanish and U.S. securities regulations.
The special redemption clause favoring Brookfield, if confirmed, could trigger regulatory scrutiny under both jurisdictions' fair dealing requirements. Mason's detailed documentation of these issues strengthens the case for regulatory intervention. Daga's reported retirement, while notable, does not address potential liability for past governance failures or the need for structural reforms.
Urges Improved Disclosure Around Key Issues for the Benefit of Grifols Shareholders
In the letter, Mason urges the CNMV to consider the benefits to all Grifols shareholders from improved disclosure around several key issues, including:
- Related-party transactions and conflicts of interest involving Board member Tomas Daga;
- The structure of Grifols’ internal legal department and reliance upon Osborne Clarke Spain for legal advice; and
-
The terms of Grifols’ December 2024 bond issuance, which potentially favors
Brookfield at shareholders’ expense.
The full text of the letter follows:
January 13, 2025
Comisión Nacional del Mercado de Valores
Edison, 4, 28006
Dear Chairman San Basilio:
Mason Capital is a significant Grifols shareholder, controlling ~
- Related-party transactions by current Board members and potential conflicts of interest
- Lack of customary legal department / failure of fundamental internal controls
-
Rumored clause in December 2024 bond issuance which benefits
Brookfield at shareholders’ expense
Related-Party Transactions and Conflicts of Interest at the Board Level
There are numerous related-party transactions and potential conflicts of interest at the Board which remain undisclosed. Mason has written publicly about these concerns, specifically regarding Board member Tomas Daga’s remuneration through legal fees paid to his firm, Osborne Clarke Spain, for its role as sole advisor on Grifols transactions.
Shareholders should understand the specifics of Tomas Daga’s remuneration via Osborne Clarke Spain given that, according to Grifols, he “led” significant transactions from his position on the Company’s Board. Tomas Daga, through Osborne Clarke Spain, has also been the primary advisor on every Grifols transaction that Mason can identify since 20141. Reliance on a single advisor raises significant governance concerns, especially given the clear conflict of interest between Daga’s role on Grifols’ Board and his role at Osborne Clarke Spain. These transactions have destroyed substantial shareholder value.
Additional related-party transaction disclosure is critical for shareholders to determine a fair value for their Grifols shares given nonfamily shareholders can take control of the Board and unlock significant value by replacing current Board members who are either conflicted or complicit. The additional disclosure items include:
- Fees paid to Osborne Clarke Spain by Grifols over the past 15 years and amounts received by Board member, Tomas Daga, from Osborne Clarke Spain for the same period
- Tomas Daga’s ownership of Osborne Clarke Spain for each year during the same 15-year period
- Tomas Daga’s ownership of Scranton Enterprises, either directly or indirectly via Fatjo SL
- Any arrangements between Tomas Daga (and/or his proxy Osborne Clarke Spain) and Nomura or Proskauer Rose
Mason publicly requested the above information via a public letter to Grifols Board on December 4, 2024 but has yet to receive a response2.
Lack of Customary Legal Department / Failure of Fundamental Internal Controls
Mason understands that Grifols may not have an internal legal department, instead relying solely on Tomas Daga and Osborne Clarke Spain for all significant legal advice. Mason has been able to locate only 14 employees in the company’s legal department, all of whom list their locations in
Grifols should disclose the structure of its senior legal department, including its delegations of authority. Transparency in this regard will enable shareholders to better assess the company’s governance and operational efficiency.
December 2024 Bond Issuance Potentially Benefits Brookfield at Shareholders' Expense
In December 2024 Grifols issued a
Grifols should disclose the
We understand Tomas Daga may have retired from Osbourne Clarke Spain on December 31, 2024. We suspect in response to the blatant conflicts Mason and others have highlighted recently. If true, this retirement indicates the conflicts are a real issue the Board now recognizes. However, management, conflicted family shareholders, Tomas Daga, and any current or past Board Members cannot absolve themselves of any historic breaches of duties. The years of conflicted payments to Osbourne Clarke, still undisclosed, Tomas Daga holding the Grifols’ family proxy, and the insulation management and board has had from almost any other outside advice does not escape scrutiny because of this retirement. Billions of dollars in shareholder value has been destroyed, likely as the result of blatant conflicts that resulted in breaches of duties by board members.
Mason believes that only with disclosure on the above items can shareholders evaluate conflicts of interest and determine whether the current Board’s governance practices align with shareholder interests. The CNMV and all shareholders should consider where the stock would trade given a truly independent board. Given there are long-term investors who do not own Grifols today because of conflicted Board members, the current corporate governance restricts the Company’s valuation in the market, harming all shareholders.
Regards,
Kenneth M Garschina
Managing Member
Mason Capital Management
About Mason Capital Management LLC
Mason Capital Management LLC is an absolute return focused investment firm that combines deep fundamental analysis with hard catalysts to drive value creation. Founded in July 2000 by Ken Garschina and Mike Martino, Mason’s strategies range from event-driven investing to corporate carve-outs and control acquisitions.
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1 “Mason Capital Management Highlights Corporate Governance Failures and Significant Shareholder Value Destruction Under Grifols Board of Directors”, Business Wire, November, 8 2024 (Link)
2 “Mason Capital Management Requests Immediate Disclosure of Important Information Regarding Conflicted Grifols Director Tomas Daga”, Business Wire, December 10, 2024 (Link)
3 Per “Legal” section of the company’s LinkedIn page, excluding compliance roles
4 ~
5 “Grifols Keeps Door Open to Brookfield With Special Bond Term”, Bloomberg, December 13, 2024 (Link)
View source version on businesswire.com: https://www.businesswire.com/news/home/20250113198547/en/
Jonathan Gasthalter/Sam Fisher
Gasthalter & Co.
+1 (212) 257-4170
Source: Mason Capital Management LLC
FAQ
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