Exor, the holding company of Italy's Agnelli family, has successfully raised approximately 3 billion euros following the announced sale of around 4% of its stake in the renowned sports car manufacturer Ferrari. The transaction, comprised of about 7 million shares, signals Exor's strategic rebalancing within its investment portfolio.
On February 26, 2025, Exor confirmed the "successful pricing of the previously announced accelerated bookbuild offering" aimed at institutional investors, anticipating settlement by March 3, 2025. Despite the sale, Exor will remain the largest shareholder of Ferrari, controlling roughly 20% of the economic rights and 30% of the voting rights. This commitment reaffirms Exor's dedication to its investment strategy and long-term relationship with the prestigious automotive maker.
John Elkann, chairman of Exor, highlighted the significance of Ferrari’s role within the firm, stating, "Over the past ten years, Ferrari’s performance has been key to tripling Exor’s NAV. This transaction allows us to reduce our portfolio concentration, fostering diversification through potential new acquisitions. Our support for Ferrari and our confidence in its future remain unchanged." With Ferrari historically representing about 50% of Exor's net asset value, maintaining this connection is pivotal.
The decision to sell shares ostensibly supports Exor's future growth plans. A portion of the funds, approximately 1 billion euros, is earmarked for initiating a new share buyback program as part of Exor's overarching strategy. By lightening its stake, Exor aims to raise liquidity for larger, undisclosed acquisitions, retaining the flexibility to adapt to future opportunities.
Exor's sale was managed through joint global coordinators Goldman Sachs Bank Europe and J.P. Morgan, alongside several other major banks. This approach, referred to as accelerated bookbuilding, allows for swift transactions often favored by institutional investors and maintaining market stability.
Following the announcement of Exor's sale, Ferrari’s shares dipped, reflecting market volatility and uncertainty driven by high-profile transactions of this nature. By early trading on Thursday, Ferrari's stock fell by roughly 7% to around 449 euros. Such fluctuations underline the sensitive balance between investor confidence and company performance.
Meanwhile, Ferrari announced its independent plan to repurchase its shares, committing to buy back 666,666 shares for approximately 300 million euros, as part of its multi-year share buyback program, which was originally announced at the 2022 Capital Markets Day. This repurchase is expected to align with the company's industrial free cash flow generation and is categorized under the buyback program approved by shareholders.
The buyback program, totaling 2 billion euros, aims to acquire up to 10% of Ferrari's common shares over 18 months, reinforcing the company’s strategy of balancing shareholder returns with sustained financial strength. Ferrari's proactive stance during Exor's share sale exemplifies its commitment to maintaining market integrity and shareholder value.
Elkann's reflections on Ferrari underline its status as not just another asset within Exor's portfolio, but a linchpin of its overall value. He remarked, "Ferrari has tripled the value of Exor," reflecting how the automotive marque's fierce performance enhances the holding company’s financial standing and bolsters its investment framework.
While the complete details surrounding Exor’s next moves remain undisclosed, the recent developments portray a strategic pivot aimed at ensuring long-term growth and adaptation. Both Exor and Ferrari seem poised for continued collaboration, with strong foundational ties and shared ambitions.
Elkann's leadership signals both confidence and readiness to maneuver as needed within the volatile markets. The commitment to Ferrari indicates Exor’s balanced approach between maintaining its influential role and pursuing new ventures, encapsulating the dynamics of modern investment strategy.
Importantly, as shareholders await the outcomes of these transactions and the forthcoming repurchase program, the interplay between Exor's financial maneuvers and Ferrari’s operational growth will be closely monitored across the industry. The future promises potential new adventures for both entities, underpinned by their longstanding partnership and innovative outlook.