Company: GIFLF
Filing Date: 2025-02-26
Form Type: 6-K
Source: 0001104659-25-017501
Chunk: 37

Company: Grifols SA
Filing Date: 2025-02-26
Form: 6-K
Chunk 37
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 by the buyer, Grifols will maintain the ability to exercise said    
 purchase option in the 90-day period that the buyer has to remedy a non-payment situation);                              
 - There are no shareholder agreements that establish that relevant decisions are approved in a manner different          
 from by majority vote.                                                                                                   
 - Grifols has the financial capacity to exercise the purchase option;                                                    
 - Although Grifols does not have voting rights, it maintains power in both companies, through its ability to             
 exercise the repurchase option which grants it potential voting rights;                                                  
 - Furthermore, Grifols is the manager of both companies through the management contract in the plasma                    
 collection business of the donation centers, which includes general management and joint approval of the                 
 business plan, granting the intellectual property license and know-how.                                                  
 - Additionally, there is a plasma supply agreement for 30 years where the plasma that these entities will produce        
 will be almost entirely to meet Grifols' needs. The sale price of the plasma is established based on the full cost       
 of production, plus a fixed margin. Both contracts have the same duration.                                               
 - Therefore, although Scranton owns all of the voting rights, Grifols manages the businesses and acquires 100%           
 of BPC and Haema's production and in the event of any discrepancy between Scranton and Grifols, Grifols has              
 the ability to exercise the right of the purchase option at any time.                                                    
 As a result of all of the above, Grifols has the power to direct the relevant activities of these companies, since it    
 manages them and jointly determines their business plan, having the unilateral right to repurchase 100% of both          
 companies. The fact that Grifols has a currently exercisable purchase option implies that it acts as principal in the    
 exercise of power (i) through the management contract and (ii) by not having delegated said power. Therefore,            
 Grifols maintains control in both companies and therefore consolidates them.                                             
 In relation to the purchase option and given that it is based on a variable number of shares and a variable acquisition  
 price, said instrument is a derivative financial instrument that must be valued at fair value with changes in the profit 
 and loss account.                                                                                                        
 Based on the abovementioned contractual conditions, Grifols has estimated the value of the exercise of the repurchase    
 option as follows: (i) the price at which the Selling Companies sold the shares to Scranton (totalling USD