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Agnelli Family Reduces Ferrari Stake In $3.15 Billion Sale To Fund Expansion
(MENAFN- The Rio Times) Exor, the investment arm of Italy's influential Agnelli family, has sold a 4% stake in Ferrari, raising approximately €3 billion ($3.15 billion).
This move aims to diversify Exor's portfolio and fund a significant Acquisition while maintaining its position as Ferrari's largest shareholder. The announcement, made on February 26, 2025, highlights the family's strategic approach to balancing its investments.
The sale involved seven million common shares of Ferrari through an accelerated bookbuild offering targeted at institutional investors. Despite reducing its economic stake to 20% and voting rights to 30%, Exor remains committed to Ferrari's long-term success.
CEO John Elkann emphasized their unwavering support for the luxury carmaker and confidence in its future. Ferrari itself participated in the transaction, repurchasing shares worth €300 million ($315 million) as part of its ongoing €2 billion ($2.1 billion) share buyback program.
This marks the seventh tranche of the program, financed through Ferrari's cash reserves. The transaction is set to settle on March 3, 2025.
Exor plans to use the proceeds for a €1 billion ($1.05 billion) share buyback program and a substantial new acquisition. The sale also aligns with Exor's goal of reducing portfolio concentration, as Ferrari has grown to represent nearly 50% of its net asset value (NAV).
Ferrari's Market Surge and Exor's Strategic Move
Since Ferrari's public listing in 2015, its market capitalization has surged more than tenfold, reaching over $120 billion. The Agnelli family's ties to Ferrari date back to 1969 when Fiat acquired a controlling stake in the company.
After Ferrari's spin-off from Fiat Chrysler Automobiles (now Stellantis) nearly a decade ago, it emerged as one of the world's most prestigious luxury brands. Under CEO Benedetto Vigna, Ferrari has maintained exclusivity and profitability through limited production runs and customization options.
Following the announcement, Ferrari shares dropped by 7% in early trading to €449 ($75), reflecting market reactions to the sale. Meanwhile, Exor shares rose by over 2%, signaling investor approval of its diversification strategy.
This transaction underscores Exor's intent to expand its portfolio while ensuring Ferrari remains a cornerstone of its investments. The sale reflects a calculated effort to balance growth opportunities with long-term commitments.
This move aims to diversify Exor's portfolio and fund a significant Acquisition while maintaining its position as Ferrari's largest shareholder. The announcement, made on February 26, 2025, highlights the family's strategic approach to balancing its investments.
The sale involved seven million common shares of Ferrari through an accelerated bookbuild offering targeted at institutional investors. Despite reducing its economic stake to 20% and voting rights to 30%, Exor remains committed to Ferrari's long-term success.
CEO John Elkann emphasized their unwavering support for the luxury carmaker and confidence in its future. Ferrari itself participated in the transaction, repurchasing shares worth €300 million ($315 million) as part of its ongoing €2 billion ($2.1 billion) share buyback program.
This marks the seventh tranche of the program, financed through Ferrari's cash reserves. The transaction is set to settle on March 3, 2025.
Exor plans to use the proceeds for a €1 billion ($1.05 billion) share buyback program and a substantial new acquisition. The sale also aligns with Exor's goal of reducing portfolio concentration, as Ferrari has grown to represent nearly 50% of its net asset value (NAV).
Ferrari's Market Surge and Exor's Strategic Move
Since Ferrari's public listing in 2015, its market capitalization has surged more than tenfold, reaching over $120 billion. The Agnelli family's ties to Ferrari date back to 1969 when Fiat acquired a controlling stake in the company.
After Ferrari's spin-off from Fiat Chrysler Automobiles (now Stellantis) nearly a decade ago, it emerged as one of the world's most prestigious luxury brands. Under CEO Benedetto Vigna, Ferrari has maintained exclusivity and profitability through limited production runs and customization options.
Following the announcement, Ferrari shares dropped by 7% in early trading to €449 ($75), reflecting market reactions to the sale. Meanwhile, Exor shares rose by over 2%, signaling investor approval of its diversification strategy.
This transaction underscores Exor's intent to expand its portfolio while ensuring Ferrari remains a cornerstone of its investments. The sale reflects a calculated effort to balance growth opportunities with long-term commitments.
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