Exor buy the 15% of Royal Philips as part of a 2.6 billion deal. The stake could reach up to 20%, but the Elkann holding will remain the sole shareholder in a business with flourishing prospects. And that is that of health care. With European states increasingly indebted and public investment in healthcare in retreat, betting on healthcare technology is in fact one of the best opportunities at the moment. All the more so as the western population is aging and, when it comes to health, everyone is willing not only to put their hands on their wallets, but also to get into debt.
“Exor’s investment supports fully the leadership, strategy and the value creation potential of Philips and represents a long-term investment for Exorwhich will remain a minority investor for a long time e will also appoint a member of the Supervisory Board by Philips,” explains a note.
The plans for the future
Philips’ strategy and sustainable value creation plan are based on the objective of improve people’s health and well-being through innovation and leadership in healthcare. From her side, Exor aims to back large companiesproviding stable support for their long-term value creation plans.
Exor’s investment in Philips it will not lead to any dilution of the shares and was carried through stock purchases on the market and an agreement with a leading financial institution.
Exor does not expect to buy additional Philips shares right away
Stop shopping. At least in the short term. However, the agreement provides that Exor, at its discretion, will increase its shareholding up to one maximum limit of 20% of the outstanding ordinary share capital of Philips.
“Exor’s investment in Philips, long-term perspective and growing focus on healthcare and technology, fit well with our strategy and offer significant potential for value creation. With our market leadership positions and people-focused innovation capabilities, Philips is well positioned to deliver on our mission to improve people’s health and well-being, while creating value for all stakeholders,” he said. Roy JacobsCEO of Royal Philips.
For Elkann, health and technology are central
Feike Sijbesma, Chairman of the Supervisory Board of Royal Philips, explained how “the company has a successful track record and a clear growth and development strategy in the health and technology sectors. The significant investment made by Exor underlines its confidence in the transformation of Philips into a company specialized in health technologies, as well as in its potential for growth and value”.
“Philips’ journey of change over the past few years has created a company that combines two areas – healthcare and technology – in which we are engaged. Our discussions confirmed the strong and positive alignment between our approaches and long-term support to support the development of our businesses and Philips’ ambitious plans under the chairmanship of Feike Sijbesma and the executive team led by Roy Jakobs.” commented John ElkannCEO of Exor.