Royal Philips (NYSE: PHG, AEX: PHIA), a health technology company, and Exor today announced that they have agreed to update their long-term relationship agreement.
It provides Exor — the investment arm of Italy’s wealthy Agnelli family – with the flexibility to increase its shareholding in Philips to up to 22% of the company’s issued ordinary share capital and voting rights. The 22% limit is up from the previous 20% cap, with the possibility of increasing its stake further subject to approval by the Philips Supervisory Board. Governance arrangements remain unchanged, including Exor’s right to nominate one member of the Philips Supervisory Board.
“The updated agreement reflects Exor’s support for Philips and its Board of Management as we execute our 2026–2028 plan. It underscores the value creation potential of the plan and our focus on delivering profitable growth,” said Roy Jakobs, CEO of Royal Philips, in a press release.
The company unveiled its 2026-2028 plan in February, targeting mid-single-digit comparable sales growth CAGR and mid-teens adjusted EBITA margin in 2028.
“We support Philips’ long-term strategy defined by innovation, value creation and disciplined execution. The updated agreement reflects our continued commitment to Philips as its largest shareholder,” said John Elkann, CEO of Exor, in a press release.
The partnership began in August 2023, when Exor bought a 15% stake in Philips. At the time, the investment represented a vote of confidence in the Dutch medtech giant as it sought to move on from a major recall involving millions of CPAPs and other respiratory devices. Under the original agreement, Exor’s stake was capped at 20% of Philips’ outstanding ordinary share capital. Today’s update lifts that cap to 22%. The agreement also gave Exor the right to propose one member to the Supervisory Board.
Philips stock was up 1.52% this morning following the announcement.
The company’s second quarter results, posted July 27, beat the consensus Wall Street forecast. Philips reported profits of $438.4 million, or adjusted earnings of $0.56 per share, $0.19 ahead of expectations.
