Shares of health technology company Royal Philips (NYSE:PHG) are on the rise today after Netherlands-based Exor picked up a 15% stake in Philips.
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In tandem with this investment, Exor can also nominate a member to Philips’ supervisory Board. Importantly, the investment is geared towards supporting Philips’ value creation potential while Exor looks to boost its footprint in the healthcare and technology verticals.
Further, the investment, carried out via on-market stock purchases, will not mean a share dilution in Philips. While Exor has committed to being a long-term minority investor in Philips, under the agreement it can also choose to increase its stake to a maximum of 20% in the company.
After gaining nearly 23.5% over the past six months, Philips shares are up a further 4.7% at the time of writing. Overall, the Street has a $21.90 consensus price target on Philips alongside a Hold consensus rating.
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