Royal Philips and Exor, a Netherlands-based diversified holding company, have entered into an agreement whereby Exor has bought a 15% share of the company and will nominate a member to the Philips supervisory board.
While Exor does not plan to buy further Philips shares in the short term, over time the relationship agreement provides for Exor, at its discretion, to increase its participation to a maximum limit of 20% of Philips’ outstanding ordinary share capital.
“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," said Roy Jakobs, CEO of Royal Philips. "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.”
The holding company aims to build great companies providing stable and committed support for their long-term value creation plans. The discussions between Exor and Philips were initiated in the context of Exor’s interest in increasing its presence in the healthcare and technology sectors.
“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," said John Elkann, Exor’s CEO. "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.”
