Exor, an Italian investment company owned by the Agnelli family, renowned for founding Fiat, has acquired a significant 15% stake in medical technology firm Philips.
This strategic investment positions Exor as the largest single investor in Philips and involves a substantial €2.6 billion infusion into the Dutch company. Exor, listed on the Amsterdam stock exchange, boasts a diversified portfolio with around €33 billion invested across various global enterprises, including Juventus football club and The Economist Group.
Highlighting a longstanding interest in health technology specialization, Exor expresses full support for Philips' leadership, strategy, and potential for value creation, as emphasized in an official statement.
This transaction includes provisions for Exor to nominate a representative to Philips' supervisory board and to potentially increase its participation to a maximum cap of 20% of the company's outstanding ordinary share capital.
As Philips grapples with the consequences of issues related to its sleep apnea breathing equipment, it has allocated over €1.5 billion to address potential claims for damages. Reportedly, Philips' share price has plummeted by 70% since the inception of these problems.
Philips' recall of 5.5 million machines and 17 million sleep masks worldwide stems from the discovery of tiny foam particles being released during cleaning and inhalation risks. Additionally, magnetic clips in the masks may interfere with heart pacemakers.
In response, an Exor spokesperson communicated that the investment house acknowledges the sleep apnea concerns but underscores the long-term perspective of the investment, extending beyond the current issue. Photo by SurfAst, Wikimedia commons.