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.
Write to Joe Hoppe at joseph.hoppe@wsj.com
This article was originally published by Marketwatch.com. Read the original article here.
