EXOR increases their share in The Economist
Written by Redaction
Turin - The investment company EXor S.p.A., controlled by the Agnelli family, announced they have increased their shareholding from 4.7 to 43.4 percent in The Economist Group. Exor has agreed to purchase 6.3 million (27.8 percent) ordinary shares and 1.26 million (100 percent) B special shares in The Economist Group from Pearson Group plc for a total amount of 405 million euros.
The acquisition will be funded by available cash on hand. John Elkann, Chairman and Chief Executive of EXOR, said in a statement: "By increasing our investment in The Economist we are delighted to affirm our role as one of the Group's long-term supportive shareholders, along with the Cadbury, Layton, Rothschild and Schroder families and other individual stable investors. We have always admired the editorial integrity and thoroughly global outlook that are the hallmarks of The Economist's success and we fully subscribe to its historic mission to 'take part in a severe contest between intelligence, which presses forward, and an unworthy, timid ignorance obstructing our progress'. Our strong belief in the merits of this investment is all the greater given The Economist's decision to join us, by investing in its own shares, which is a sign of its confidence in the Group's exciting and profitable future. Together we are convinced of the huge potential that still lies ahead and particularly in The Economist's ability to seize the many development opportunities linked to the digitisation of the media industry, under the leadership of Zanny Minton Beddoes and Chris Stibbs." The transaction, which has the unanimous support of The Economist board of directors, means EXOR will become the Group's single largest shareholder. It was also agreed that, subject to a shareholder vote, The Economist's Articles of Association will be amended to limit to 20 percent the voting powers of any single shareholder, and to guarantee that no one individual or company can own more than 50 percent of the Group's shares. The editorial values of the newspaper will still be overseen by its independent trustees. (AGI)
Published in Business UK
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