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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