# Agnelli family’s Exor buys $2.8 billion stake in Philips Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-08-14 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Exor, Agnelli family buys $2.8 billion stake in Philips Meta Description: Italian Agnelli family's investment firm Exor NV purchases 15% stake in healthcare technology group Philips, boosting confidence in the company. URL: https://financedigest.com/agnelli-familys-exor-buys-2-8-billion-stake-in-philipshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-08-14t051710z1lynxmpej7d04trtroptp4exor-results-1736813669758-compressed.jpg) # Agnelli family’s Exor buys $2.8 billion stake in Philips By Toby Sterling and Bart H. Meijer AMSTERDAM (Reuters) -Dutch investment firm Exor NV, controlled by Italy’s Agnelli family, has bought a 15% stake in healthcare technology group Philips for about 2.6 billion euros ($2.84 billion), the companies said on Monday. Exor becomes Philips’ largest [shareholder and the deal is a welcome vote](https://www.financedigest.com/most-twitter-shareholders-vote-in-favor-of-sale-to-musk-sources.html "Most Twitter shareholders vote in favor of sale to Musk-sources") of confidence in the Dutch company, which is in the late stages of a huge product recall that began in 2021 and that knocked two thirds off its share price. Philips [shares rose 5.1% to 19.43 euros](https://www.financedigest.com/asia-shares-subdued-yen-shunned-as-euro-shines.html "Asia shares subdued, yen shunned as euro shines") by 0805 GMT, while Exor shares slipped 0.5% to 81.06 euros. Exor, a long-term investor, purchased its [stake on the open market](https://www.financedigest.com/italy-open-to-selling-down-mps-stake-on-market-if-terms-buyers-are-right-sources.html "Italy open to selling down MPS stake on market if terms, buyers are right – sources"). Under an agreement with Philips, it will take a seat on the company’s supervisory [board and may later expand its stake](https://www.financedigest.com/billionaire-cohen-builds-stake-in-nordstrom-urges-board-shakeup.html "Billionaire Cohen builds stake in Nordstrom, urges board shakeup") to a maximum of 20%. Exor is majority-owned by Giovanni Agnelli BV, the family vehicle of the founder of Fiat – Italy’s wealthiest family according to Forbes. Exor is the largest shareholder in [companies including](https://www.financedigest.com/papaya-global-makes-historical-impact-first-payroll-payments-company-included-in-time100s-2023-most-influential-companies-list.html "Papaya Global Makes Historical Impact – First Payroll & Payments Company Included in TIME100’s 2023 Most Influential Companies List") Ferrari, Stellantis and CNH Industrial. Exor’s substantial investment underlines their confidence in Philips’ [transformation into a healthcare technology](https://www.financedigest.com/the-transformative-power-of-technology-in-banking-and-finance.html "The Transformative Power of Technology in Banking and Finance") company and its growth and value potential,” Philips Chairman Feike Sijbesma said in a statement. On a call with journalists, Philips executives said Exor had been researching a possible [investment since last year but the share purchases, which trigger disclosure requirements under Euronext rules, came together in just several days with assistance of an unnamed investment bank](https://www.financedigest.com/limited-support-for-central-bank-digital-currencies-in-global-investment-industry-survey.html "Limited support for central bank digital currencies in global investment industry survey"). Exor said in April that it had about 6.5 [billion euros available for investments](https://www.financedigest.com/amazon-com-to-invest-over-1-billion-euros-in-european-electric-van-truck-fleet.html "Amazon.com to invest over 1 billion euros in European electric van, truck fleet") and would focus on healthcare, luxury and technology businesses. Recent [investments include](https://www.financedigest.com/true-operational-resilience-must-include-investing-in-esg.html "True operational resilience must include investing in ESG") stakes in healthcare group Institut Merieux and hospital manager Lifenet. Analysts for ING said in a note that Exor’s investments currently focus on listed firms because they are “more interesting from a valuation perspective” than [private markets](https://www.financedigest.com/the-uk-private-healthcare-market-is-expected-to-witness-an-escalation-going-forward.html "The UK Private Healthcare Market is expected to witness an escalation going forward"), where values have not yet caught up with “reality. Philips [shares have rallied](https://www.financedigest.com/world-shares-rally-as-china-offers-markets-a-hand.html "World shares rally as China offers markets a hand") by 35% so far this year to close at 18.50 euros on Friday. That compares with more than 60 [euros per share](https://www.financedigest.com/mexicos-femsa-launches-second-3-billion-euro-sale-of-heineken-shares.html "Mexico’s FEMSA launches second 3 billion euro sale of Heineken shares") before the recall. “On top of being a med-tech company, Philips is also perceived as a value stock, having been impacted by the Respironics recall saga,” ING said. Philips has taken a 575 [million euro](https://www.financedigest.com/spains-king-felipe-reveals-2-6-million-euros-in-wealth-in-bid-to-make-royal-house-more-transparent.html "Spain’s King Felipe reveals 2.6 million euros in wealth in bid to make Royal House more transparent") provision for lawsuits related to the recall, and CEO Roy Jakobs said Exor has not received any information beyond what has been made public about its ongoing talks with the U.S. Department of Justice over a settlement. Philips last month [reported core profit](https://www.financedigest.com/sugar-group-tereos-reports-leap-in-core-profit-as-prices-rise.html "Sugar group Tereos reports leap in core profit as prices rise") of 453 million euros and slightly upgraded financial targets for the full year. ($1 = 0.9147 euros) (Reporting by Toby SterlingEditing by Kim Coghill, David Goodman and Susan Fenton) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---