Exor Sells SGS Stake to GBL for €2 Billion

MILAN--Italy's Exor SpA (EXO.MI) said Monday it has sold its entire stake in SGS SA (SGSN.VX) of Switzerland to a Belgian investment company for 2 billion euros ($1.54 billion), resulting in a consolidated capital gain of EUR1.5 billion.

Exor, an investment company best known for its controlling stake in Fiat SpA (F.MI), the Italian automaker, said in a statement it had reached a definitive agreement to sell 1.2 million shares in SGS to Groupe Bruxelles Lambert (GBLB.BT) at 2.125 Swiss francs ($1.712) apiece.

Exor said the stake represented about 19% of its gross asset value.

"The proceeds of the sale will be deployed, over time, in new investment opportunities," it said in a statement.

It added that the deal is expected to be settled by June 10.

Based in Geneva, SGS offers services in inspection, verification, testing and certification, for everything from raw materials to consumer goods.

Exor Chief Executive John Elkann told analysts on a conference call last Thursday the investment company planned to sell stakes in businesses it no longer considered core in order to focus on fewer but bigger investments.

Speaking to reporters at Exor's annual shareholders meeting on the same day, Mr. Elkann hinted at the company's likely availability should Fiat need to raise capital to complete its acquisition of U.S. partner Chrysler Group LLC, in which it already owns 58.5%.

Write to Gilles Castonguay at [e-mail]

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