Exor, the holding company of Italy's Agnelli family, has raised approximately 3 billion euros ($3.14 billion) by selling a roughly 4% stake in Ferrari, it announced on Thursday. The sale aims to diversify its investment portfolio and to provide the resources for future acquisitions. The company will allocate part of the proceeds from the sale to a 1 billion euro buyback program.
In a separate statement on Thursday, Ferrari disclosed that it had invested about 300 million euros to repurchase nearly 667,000 of its own shares as part of its buyback initiative.
Although Exor did not reveal the specific price set by JPMorgan and Goldman Sachs during the accelerated bookbuilding process, Reuters calculations suggest an estimated share price of around 450 euros.
Initial trading showed Ferrari shares dropping by 7%, following Wednesday's close at 483 euros, near their peak value. Meanwhile, Exor's Dutch-listed shares rose by 2.7%.
Ferrari constitutes approximately 50% of Exor's net asset value (NAV). Post-sale settlement on March 3, Exor will maintain a 20% stake and 30% of voting rights, remaining as Ferrari's largest shareholder.
"We are steadfast in our commitment to retain our status as the most significant shareholder of Ferrari over the long term," stated Exor CEO John Elkann. Elkann, a member of the Agnelli family, also serves as the chairman of Ferrari.
The agreement between Exor and Piero Ferrari, son of founder Enzo and the second largest investor in Ferrari, will remain unchanged. Together, they will hold combined voting rights close to 50%.
A notable portion of the stake sale earnings will be channeled into a strategic acquisition to expand Exor's portfolio, as confirmed by a company insider.
Exor holds the largest share in automaker Stellantis and Dutch firm Philips. It controls manufacturers Iveco and CNH, as well as the Serie A soccer club Juventus. Additionally, the company has investments in healthcare, luxury goods, technology, and media.