Exor, the Luxembourg-based holding controlled by the Agnelli-Elkann family, has sold approximately 7 million shares of Ferrari, accounting for roughly 4% of the automaker's total equity, to institutional investors for €3 billion. This sale is expected to close on March 3, 2025.
Goldman Sachs and J.P. Morgan acted as joint global coordinators and bookrunners, alongside BNP Paribas, Intesa Sanpaolo, Société Générale, and UniCredit. Following this transaction, Exor will remain the largest single shareholder of Ferrari, retaining around 20% of economic rights and 30% of voting rights.
Despite this significant sale, Exor remains wholly committed as a long-term shareholder of Ferrari, having agreed to a lock-up period of 360 days concerning its remaining shares. This maneuver is part of Exor’s strategic shift to diversify its portfolio, which had become heavily concentrated in Ferrari's stock, reportedly constituting over 50% of the holding's net asset value. John Elkann, CEO of Exor, expressed the need for this diversification, stating, “Over the past decade, Ferrari's performance has been instrumental to Exor’s portfolio, with its share skyrocketing from 15% to about 50% of net asset value.”
Elkann elaborated on Exor’s plan to utilize the proceeds from the sale not just for immediate financial stability but also to facilitate future acquisitions, hinting at significant investments targeted toward three key sectors: health care, technology, and luxury goods.
Looking at market reactions, Exor's decision has led to fluctuations in Ferrari's stock price, dropping by 9% after the news was released. Nevertheless, Ferrari announced its own buyback plan, intending to repurchase up to 10% of the shares sold by Exor, amounting to €300 million, as part of its broader €2 billion buyback strategy.
This buyback demonstrates Ferrari's commitment to maintaining market confidence and bolstering its own stock value amid these strategic changes. Notably, the governance structure of Ferrari remains intact, and Elkann reassured investors stating there would be “no changes to Ferrari’s governance as Exor retains 30% of voting rights,” allowing the Agnelli-Elkann family to maintain influential control over the company.
Elkann’s motivations for this adjustment come at a time when the global backdrop is shifting, with potential tariffs on European cars from the United States posing risks to Ferrari, which derives about 25% of its revenue from North America. By reducing its reliance on the automotive sector, Exor aims to embrace innovation and refocus on profitable sectors unaffected by such pressures.
Ferrari participates actively in reshaping its future, emphasizing financial solidity and strategic adjustments without compromising its heritage and governance, ensuring shareholders remain optimistic about the brand's direction.
This transition could lead to more stable growth for Exor and Ferrari, enabling both to navigate the changing market dynamics effectively.