Exor N.V. has successfully announced the pricing of its accelerated bookbuild offering, involving the sale of approximately 7 million ordinary shares of Ferrari N.V. This sale, which typically appeals to institutional investors, equates to about 4% of Ferrari's outstanding common shares, raising total proceeds of €3 billion.
Notably, following the completion of this significant transaction, Exor will continue to be the largest single shareholder of Ferrari, holding about 20% of the economic rights and 30% of the voting rights within the company's share capital. Exor has reassured the market of its commitment to remain as a long-term shareholder of the prestigious luxury sports car manufacturer.
Registered for settlement on March 3, 2025, this sale marks not just a strategic financial maneuver for Exor but also demonstrates its continued influence and stake within the automotive industry.
According to Exor, the funds raised from this offering will be allocated strategically; €1 billion is planned for share buybacks, allowing Exor to reinforce its investment back within its own holding, whilst the remaining €2 billion will facilitate the diversification of its investment portfolio, potentially laying the groundwork for future acquisitions.
The transaction was facilitated by several prominent financial institutions. Goldman Sachs Bank Europe and J.P. Morgan have taken roles as the joint global coordinators and bookrunners for this significant financial operation, complemented by joint bookrunners BNP Paribas, IMI – Intesa Sanpaolo, Société Générale CIB, and UniCredit.
This strategic sale is also part of Exor's broader plan to manage its financial portfolio efficiently. Before the offering, Exor held approximately 24.84% of Ferrari’s shares. Following the sale, their stake will decrease to about 20.8%. Despite this reduction, Exor remains fortified as Ferrari's main shareholder, alongside Piero Ferrari, who controls 10.56% of the company and has held the position of Vice Chairman since 1988.
Exor's move to divest 4% of its shares demonstrates not only financial prudence but also reflects the company’s desire to balance its portfolio, particularly as Ferrari previously constituted around 50% of Exor's net asset value.
Market reactions have been closely monitored, as investors typically show interest when major shareholders adjust their positions. Exor's decision to commit to a lock-up period of 360 days on its remaining shares aims to bolster investor confidence, preventing immediate resale of their stakes and stabilizing Ferrari’s stock post-announcement.
This significant financial maneuver speaks volumes about the current dynamics of the luxury automotive market. With Ferrari continuing to thrive as one of the world’s leading luxury car manufacturers, the company remains on the minds of many investors and analysts alike.
What does this mean for Ferrari moving forward? With Exor's majority stake continuing to provide stability, the management at Ferrari will likely focus on enhancing production capacities and exploring new markets. Given Exor’s historical track record, the future for Ferrari appears to be positioned firmly, utilizing its status as one of the most recognized brands globally.
Exor has established itself as a dominant force not only through its investments but also through its strategic decisions, showcasing the Agnelli family's enduring influence across industries.