By Stephen Wilmot

Ferrari stock fell 8% in Milan after controlling shareholder Exor said it would sell shares worth roughly $3.1 billion.

The move is well timed: Ferrari's stock hit new highs this month after the racing-car maker said its order book was full through the end of 2026.

But Exor, an investment vehicle controlled by Italy's storied Agnelli family, tried to dispel suspicion that it is calling a top for a stock that has risen almost 10-fold since its 2015 initial public offering.

Chairman John Elkann presented the move as an exercise in portfolio rebalancing, after Ferrari had grown to account for roughly half Exor's net worth.

The investor will remain the carmaker's top shareholder with a roughly $17 billion stake and 30% of the votes after the deal. It committed to a 360-day lock-up agreement, meaning it can't sell any more stock for nearly a year.

Exor will use a third of the proceeds for share buybacks, leaving roughly $2 billion for a "sizable new acquisition." Its Amsterdam-listed stock rose marginally.

The investment company has for years been diversifying away from its legacy Italian automotive holdings. After spinning out Ferrari as a specialist luxury carmaker, it merged its mass-market automaker Fiat Chrysler with Peugeot SA to create today's Stellantis.

Its most recent focus has been healthcare technology. In 2023 it became the top shareholder in Philips NV as the Dutch company struggled to draw a line under its sleep-apnea crisis.

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(END) Dow Jones Newswires

February 27, 2025 05:16 ET (10:16 GMT)

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