Exor Buys 15% Stake in Philips

By Joe Hoppe

Exor and Royal Philips jointly said that they have entered a relationship agreement, with Exor picking up a 15% stake in Philips for an undisclosed sum, but worth around 2.58 billion euros ($2.82 billion).

Investment company Exor, which holds stakes in a number of companies such as car makers Ferrari and Stellantis, said Monday that its investment is fully supportive of Dutch health-technology company Philips' leadership, strategy and value creation potential, and gives it the ability to nominate one member to Philips' supervisory board.

As of Friday's closing, Philips had a market cap of around EUR17.18 billion.

Exor said it was committed to being a long-term minority investor, and while it doesn't plan to buy more shares in Philips in the short-term, over time the agreement allows for Exor to increase its participation to a maximum limit of 20% of Philips' outstanding share capital.

"Exor's investment in Philips, their long-term outlook and increased focus on healthcare and technology, fit well with our strategy and substantial value creation potential," Philips Chief Executive Roy Jakobs said.

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(END) Dow Jones Newswires

August 14, 2023 01:34 ET (05:34 GMT)

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