Exor, all the Dutch games of the Elkann family
The multiple voting mechanism envisaged in the Netherlands will soon be triggered, which guarantees long-term shareholders (such as the Elkann family in Exor) greater voting rights than the share capital held. Facts, numbers and scenarios
Dutch maneuvers at Exor.
Giovanni Agnelli BV, the company chaired by John Elkann who owns very significant stakes in Stellantis, CNH Industrial, Juventus and in the GEDI publishing group, will soon increase its shareholding in Exor: that is the financial holding, based in Amsterdam, always managed by John Elkann.
THE QUOTAS IN EXOR
Giovanni Agnelli BV currently owns 53 percent of Exor. But it could soon increase its share to around 80 percent.
As Il Sole 24 Ore explains, “in December the five years that limited the voting rights to the share capital owned” by Giovanni Agnelli BV in Exor end. "From that moment on", the newspaper continues, "the multiple voting mechanism envisaged in the Netherlands", where Exor is based, "will be triggered," which guarantees long-term shareholders greater voting rights than the corresponding share of capital " .
Basically, through the multiplier mechanism, Giovanni Agnelli BV's share of voting rights in Exor will go from 53 to about 80 percent. Il Sole 24 Ore explains that “technically it is as if the Agnelli family had the freedom to use the quota exceeding 51% for potential investment transactions or future alliances”.
A POLO OF LUXURY WITH ARMANI?
Thanks to the increase in the share of Giovanni Agnelli BV, Exor will have greater financial strength that will allow it to evaluate large investments.
Il Sole 24 Ore adds that the holding aims to create a "luxury pole" around itself, perhaps through an alliance with Giorgio Armani, although at the moment there are no concrete negotiations underway. Or – according to the sources of the newspaper – Exor could be used by the Agnelli to "liquidate those branches of the dynasty interested in 'monetizing' their shares" in a very positive moment for the holding. In this way, John Elkann would strengthen control of the family's assets.
THE SALE OF PARTNER RE
The increase in the share of Giovanni Agnelli BV is also relevant for the timing. Exor is in fact close to selling the PartnerRe reinsurance company to the French insurance group Covéa for 9 billion dollars. A memorandum of understanding has been signed in recent weeks. The actual contract is expected to arrive by the end of 2021, and the operation will become effective in mid-2022.
The negotiation between Exor and Covéa on PartnerRe dates back to 2020, then blocked due to the pandemic. The value of the agreement is judged to be very high, but it should be specified that Exor has promised investments of 625 million euros in Covéa's special vehicles.
It seems that, again according to the sources of Il Sole 24 Ore , alongside the sale, Exor was evaluating the listing of PartnerRe: the operation – now abandoned – would however have led to lower sales numbers, given the market situation.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/exor-quota-giovanni-agnelli-bv/ on Wed, 17 Nov 2021 09:55:31 +0000.