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Investing.com - Milan-listed shares in Ferrari (BIT:RACE) (NYSE:RACE) slipped in early trading on Thursday after Exor (AS:EXOR) announced that it had raised around 3 billion euros from selling a 4% stake in the Italian sportscar maker.
In a statement released on Wednesday, John Elkann, CEO of Exor, the holding company of the powerful Agnelli family, said the sale of around 7 million shares in Ferrari would allow it to "improve diversification" of its investments "by making a sizeable new acquisition, consistent with our purpose of building great companies."
Exor added it would also pursue launching a fresh share buyback program worth 1 billion euros.
Despite the sale, Exor is set to remain the biggest shareholder in Ferrari, owning a 20% stake and 30% of voting rights.
"Our support to Ferrari and our trust in its solid future is unwavering. Our commitment to remain its largest shareholder for the long term is stronger than ever,” said Elkann, who is also Ferrari’s Chairman.
Although no official price of Exor’s accelerated bookbuilding procedure was released, it was estimated to be around 450 euro per share, Reuters reported, citing its own calculations based on available data.
Separately on Thursday, Ferrari said it had spent roughly 300 million euros to buy back 666,666 of its own shares. The group said the purchase, which was financed by cash on hand, represented the seventh tranche of a multi-year share buyback plan.
Ferrari noted that it will continue to pursue the program, which calls for the firm to repurchase up to 10% of its shares over an 18-month period that began in April 2024.
Shares in Ferrari closed at 483 euros on Wednesday, hovering around an all-time peak.
(Reuters contributed reporting.)