Ferrari's parent company acquires $2.8 billion stake in beleaguered Philips
Exor NV, the investment arm of the Agnelli family, has acquired a 15% stake in healthcare technology group Philips for $2.8 billion. Agnelli family, the owner of Ferrari and Juventus, is now the top investor in the company. This deal comes as a significant boost for Philips, which is currently recovering from a major product recall that severely reduced its share price.
Agnelli family could increase its stake to 20%
Exor has been exploring a potential investment in Philips since last year. However, the share purchases came together rapidly in the last few days. Exor plans to actively support Philips's strategy and may increase its stake to 20%, while also securing a seat on the supervisory board. Until it takes a seat on the supervisory board, it will attend meetings as an observer.
Philips's shares have rallied this year
Philips's shares have experienced a 35% rally this year, closing at €18.50 on Friday. Before the recall, its shares traded at €60 per share. "The company has allocated €575mn for recall-related lawsuits and is currently in ongoing discussions with the US Department of Justice regarding a settlement," said Feike Sijbesma, chairman of Philips. John Elkann, Exor's CEO, expressed Exor's long-term commitment to Philips.
