Italy’s billionaire Agnelli family raised its holding in Royal Philips, giving it a stake worth US$4.19 billion, in a signal of increased confidence in the Dutch medical device manufacturer.
The Agnellis’ Exor now owns 17.51 per cent of Philips, according to a US regulatory filing late on Tuesday (Jun 25). It held 16.1 per cent as of May 16 and was already the company’s largest shareholder.
Exor is the holding company for the Agnelli family that founded Italian automaker Fiat. It amassed a 15 per cent stake in Philips in 2023 as it began diversifying into healthcare, technology, financial services and luxury goods. The deal gave Exor the ability to increase its stake in the maker of ventilators and cardiographs to 20 per cent.
The increased investment in Philips demonstrates more confidence in the Dutch company, which in April settled claims in the US linked to its faulty sleep apnea devices. Philips has in recent years been navigating a recall of the sleep-therapy devices over concerns of disintegrating noise-canceling foam that patients inhaled.
Exor acquired 19.5 million added Philips shares for about 481 million euros (S$697.6 million), according to Tuesday’s filing. It has spent about 3.3 billion euros in total for its holding in Philips.
Late last year, Exor chief executive officer John Elkann expressed confidence Philips’ safety-related issues would be resolved. Looking ahead, Exor “needs to assure that the relationship with Philips proceeds well, of course with the chance to invest more,” he said then.
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Exor didn’t immediately respond to an email request for comment. The company is the biggest shareholder in Fiat and Jeep owner Stellantis, supercar maker Ferrari, Juventus Football Club and The Economist Group.
Philips didn’t offer additional comment and pointed to its original announcement in 2023. Shares of Philips rose 3.2 per cent in Amsterdam and have gained 20 per cent this year. BLOOMBERG
