Exor N.V. Shareholders Face 11% Value Drop: What's Next?

Ladies and gentlemen, buckle up! We're diving into the wild world of Exor N.V. (AMS:EXO), where institutions and private companies holding considerable shares are feeling the heat. An 11% drop in holdings value is not something to sneeze at, folks! Let's break it down and see what's really going on.

First things first, Exor N.V. is a diversified holding company controlled by the Agnelli family. They've been building great companies and making successful investments worldwide for over a century. But even the best families face challenges, and Exor is no exception.

The primary reasons behind this 11% decrease in the value of holdings are multifaceted. Exor N.V.'s revenue took a nosedive in 2024, dropping by 66.09% compared to the previous year. That's a massive hit, folks! From 45.41 billion to 15.40 billion—ouch! This kind of drop can make even the most seasoned investors nervous.

But wait, there's more! Exor N.V. recently sold a 4% stake in Ferrari to institutional investors, valued at 3 billion euros. This move was part of a strategic plan to diversify their portfolio and raise funds for a sizeable new acquisition and a 1 billion euro share buyback program. While this might seem like a smart move, it's also a signal that Exor is looking to shake things up and potentially reduce their exposure to Ferrari.

Now, let's talk about the implications for institutional and private shareholders. Institutional shareholders, who own 25.29% of Exor's shares, might be feeling the pinch. But here's the thing: this sale could also be a golden opportunity. With the proceeds from the Ferrari sale, Exor is planning a 1 billion euro share buyback program. That's right, folks—buybacks! This could boost the value of remaining shares and potentially increase returns for institutional shareholders.

Private shareholders, who own the remaining 74.71% of the shares, might also see some benefits. Exor's NAV reached €38.2 billion at 31 December 2024, with NAV per share increasing by 9%. That's a solid performance, and it shows that Exor is still generating strong cash flows and returning value to shareholders.

But let's not forget the elephant in the room: the market cap. Exor N.V. has a market cap of 17.36 billion, with an enterprise value of -20.26 billion. That negative enterprise value is a red flag, folks. It could indicate that the company is overvalued, and that's something to keep an eye on.



So, what's the bottom line? Exor N.V. is facing some challenges, but they're also making strategic moves to diversify their portfolio and return value to shareholders. The 11% decrease in holdings value is a wake-up call, but it's also an opportunity. Institutional and private shareholders need to stay vigilant and keep an eye on Exor's next moves. This is a company with a rich history and a strong track record, but even the best families face challenges. Stay tuned, folks—this story is far from over!