Exor, more than half-owned by Italy's billionaire Agnelli family, is taking a 15% stake in Philips, with an option to extend it to 20%. In total, Exor is thus investing $2.6 billion in the Dutch healthcare technology player.
The Agnelli family is known for, among other things, the Italian car brand Fiat, which was founded by the family in 1899. However, through Exor, the family also holds stakes in other car companies, including Stellantis, Ferrari and Iveco. However, consider other parties such as football club Juventus.
So now Exor is also investing in Philips. The investment does not come as a complete surprise; Exor also invested a billion euros in healthcare technology last year. So now, with Philips, the company is again betting on this market.
Severe weather
Philips has been in dire straits recently. The company produces respirators for apnoea patients, among other things. However, two years ago it was found that foam in the devices can crumble, allowing people to inhale this material. This reportedly poses health risks.
In response to the incident, Philips launched an extensive exchange campaign. As a result, the company had to write off a total of €1.3 billion on the respiratory equipment component developed. So despite the problems, Exor is now investing in Philips.
Increasing focus on health technology
Philips also develops a variety of other equipment, including home appliances and consumer electronics. However, it struck out in a new direction in recent years, increasingly focusing on healthcare technology. Exor says it wants to support this direction.
As a shareholder, Exor gets to appoint one of Philips' 10 supervisory board members. It also gets a significant vote in shareholders' meetings thanks to its 15% stake.
Author: Wouter Hoeffnagel
Photo: Philips Azurion (source: Philips)
