Ferrari NV's stock plummeted 5.25% on Wednesday during the intraday trading session.
The sharp decline came after Exor N.V., Ferrari's largest shareholder holding around 25% economic rights and 37% voting rights, announced plans to sell approximately 7 million Ferrari shares, representing around 4% of the company's outstanding common shares. The sale is part of Exor's strategy to reduce concentration in its portfolio and allow for new acquisitions and a share buyback program.
Despite the stake sale, Exor said it remains committed to supporting Ferrari's strategy and will continue to be the largest shareholder with around 20% economic rights and 30% voting rights after the transaction. Ferrari's governance structure, including the shareholders' agreement between Exor and Piero Ferrari, is expected to remain unchanged.
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