2023-08-14 09:07:00
Philips announced on Monday that Exor, the holding company of the Italian Agnelli family, historical owners of Fiat, has taken a 15% stake in the Dutch group, for an amount of 2.6 billion euros (2.4 billion in francs ), said the Italian company.
Following an agreement between the companies, ‘Exor has purchased a 15% stake in Philips’, becoming a ‘long-term minority investor’, the Dutch medical device maker said in a statement.
Discussions between Exor and Philips were initiated in the context of ‘Exor’s stated interest in increasing its presence in the healthcare and technology sectors’, according to Philips.
Exor told AFP that the transaction was 2.6 billion “at market price”. Discussions started at the ‘very end of 2022′ and a first purchase of 2.9% was made in January 2023 after the presentation of Philips’ strategic plan.
This investment provides that Exor appoints a member to the supervisory board of Philips, said the Dutchman.
“Exor’s substantial investment underscores its confidence in Philips’ transformation into a health technology company and in its potential for growth and value,” said Feike Sijbesma, chairman of Philips’ supervisory board.
Exor’s investment will not result in any stock dilution and was made through market purchases of shares and an agreement with a major financial institution, Philips added.
“They have a successful track record and a clear strategy to grow and expand in healthcare and technology,” he added.
The agreement further provides that Exor, ‘at its discretion, increase its stake up to a maximum limit of 20% of the outstanding ordinary share capital of Philips’.
The Dutch group assured during a conference call for analysts and journalists that Exor had no more information on ongoing lawsuits and investigations in the United States, after the group was forced to call back in June 2021 respiratory devices for people with sleep problems.
Users risked inhaling or swallowing pieces of toxic sound-deadening foam that could cause irritation and headaches. The group then also mentioned a ‘potential’ risk of long-term cancer.
This case plunged the Dutch group into the red last year and led to the loss of thousands of jobs.
The company meanwhile claimed in May that tests covering most registered ventilators are ‘unlikely’ to harm patients, while stressing that global regulators would have the final say.
The announcement of this 15% stake by Exor was rewarded by investors: listed on the Amsterdam Stock Exchange, the Philips stock gained 4.62% at 19.34 shortly after the opening around 09:20 (7:20 GMT) , in a slightly lower AEX index.
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