Royal Philips and Exor N.V. said in a joint statement on Monday that they had entered into a relationship agreement, under which Exor has acquired a 15% stake in Philips.
The agreement includes Exor’s commitment to be a long-term minority investor and the right to nominate one member to the Supervisory Board of Philips, the companies said.
While Exor has no plans to acquire more Philips shares in the short term, over time the agreement allows Exor to increase its interest stake to a maximum limit of 20% of Philips’ outstanding ordinary share capital.
The transfer of shares will be conducted via on-market share purchases and an agreement with a major financial institution, the companies said.
“Exor’s investment in Philips, their long-term outlook and increased focus on healthcare and technology, fit well with our strategy and substantial value creation potential. 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,” Roy Jakobs, Chief Executive Officer of Royal Philips, said in a press release.
“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. Our discussions have confirmed the strong and positive alignment between our long-term, supportive approach to our companies and Philips’ ambitious plans under the chairmanship of Feike Sijbesma and the executive team led by Roy Jakobs,” John Elkann, Exor’s Chief Executive Officer, said.
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