Fiat’s Agnelli family snaps up 15% stake in Philips

The Italian investment firm Exor has bought 15 percent of Philips’ shares, the two companies announced on Monday. The investor and medical tech company both stressed that Exor has no intention to interfere with Philips’ leadership and strategy. In exchange for long-term investment, Exor may nominate one member to Philips’ supervisory board.

According to ANP, the 15 percent Philips shares cost Exor around 2.6 billion euros and made the Italian investment company the largest shareholder of the healthcare technology group in one swoop. Exor was founded by the Agnelli family and is mainly known for being the founder of the Fiat car factory, the owner of the football club Juventus, and the largest shareholder in sports car manufacturer Ferrari.

Philips stressed that Exor’s investment in Philips will not result in share dilution. Exor has no immediate plans to buy more Philips shares, but the agreement states that the investor can increase its interest to up to 20 percent of Philips’ outstanding ordinary share capital in the future.

Exor said it fully supports Philips’ leadership and strategy to focus on medical technology. “The path of change taken by Philips in recent years has created a company that combines two areas - healthcare and technology - to which we are committed,” Exor CEO John Elkann said.

Philips CEO Roy Jakobs said that Exor’s investment and long-term outlook fit well into the healthcare tech company’s strategy. “With our market leadership positions and people-centric innovation capabilities, Philips is well positioned to deliver on our purpose to improve the health and well-being of people, creating value for all stakeholders.”

Feike Sijbesma, chairman of Philips’ supervisory board, pointed out Exor’s “successful track record and clear strategy to grow and develop in healthcare technology.” According to him, “Exor’s substantial investment underlines their confidence in Philips’ transformation into a healthcare technology company and its growth and value potential.”