John Elkann leaves the presidency of Giovanni Agnelli Bv which controls Exor but retains the command

“John Elkann has shown that he knows how to deal with uncertainties with deeds and not with words since his grandfather's death. And there were many doubts at the time”. These words of a "close collaborator of Exor" confided to Financial Times they serve to frame the many new matured, with great discretion, in the structure of the most important Italian private group, increasingly international and with a focus open to new missions, in addition to four wheels. In summary:

Let's start from the bottom. From reading the documents attached to the prospectus for the acquisition of a share in Philips, it emerges that John Elkann ha left la presidenza of Giovanni Agnelli Bv, the safe that controls 52% of the holding Exor (but 90% of the voting rights). To succeed him will be a person outside the family: Jeroen Preller, Dutch lawyer, partner of the NautaDutilh law firm who has assisted companies in the galaxy in various operations.

As MF, who launched the news, writes, when exactly the handover took place is not clear; it must be recent, since as late as mid-May – when the former limited partnership approved the 2022 budget with 36 million euros in dividends for the various shareholders representing nine branches of the dynasty – Elkann was still in the saddle.

Elkann leaves the presidency of Giovanni Agnelli: why?

Why this step back? It is not excluded that the move could serve to complicate the moves of the lawyers of Margherita Agnelli, more than ever committed to challenging the lawyer's legacy. But this version is denied by the group. If anything, it is noted that the leader of the clan increasingly demonstrates his desire to concentrate on the operational roles of the companies of an increasingly composite and complex group. Elkann had already left there presidenza di Exor ad Ajay Banga then, after the latter's appointment to the World Bank a Nitin nohria, retaining the position of managing director for himself.

The new asset of the Giovanni Agnelli holding

The move is part of a more comprehensive reorganization of the corporate structure. Out of eight advisers, two are technicians – precisely the president Preller and the adviser John Brouwer, lawyer of Allen & Overy – and six are exponents of the various family branches of the clan. Between these Andrea Agnelli, which in January had announced the exit from the board of Exor and Stellantis. They are also confirmed Benedict Della Chiesa e Luca Ferrero de Gubernatis Ventimiglia and make their debut in the safe Alexandre von Furstenberg, Niccolo Camerana e Philip Scognamiglio (managing director of BCG-Boston Consulting Group). The general counsel of Exor Florence Hinnen leaves together with Elkann and, among the family members, Alexander Nasi e Tiberio Brandolini D'Adda.

In addition, various changes have been made in recent years changes of governance of the Agnelli dynasty, which is now in its fifth generation and has over one hundred shareholders distributed as follows: at the head is the group Giovanni Agnelli (John, Lapo and Ginevra Elkann) with a strong 37,96% followed by the heirs of Maria Sole (12,32%) and Umberto (11,85%). The list goes on with John Nasi (8,75%), Laura Nasi Camerana (6,52%), i Brandolini D'Adda (5,67%), and the heirs of Susanna Agnelli-Rattazzi (4,81%), i Nasi-Ferrero (3,47%), of Emmanuel Nasi (2,58%), i Furstenberg (0,27%), the heirs of Humberta Nasi (0,001%) and the remainder between Lambs Foundation (0,95%) and treasury shares (4,86%).

On this archipelago John Elkann rules as an absolute sovereign through his role as Chief Executive Officer of Exor, which is the real investment machine and the one that produces the dividends to be traced back through Giovanni Agnelli Bv to all the relatives. Every year Exor detaches around 100 million euros in coupons, 52% of which go to the holding company and are then gradually distributed.

Exor focuses on the relaunch of the Nav

The need to multiply efforts in search of the hubs lost. The net asset value, underlines John himself in the portrait interview with Financial Times, is the market's preferred yardstick. But, in the case of Exor, the discount that reflects the distance between the sum of the subsidiaries compared to the stock exchange value by the holding company, is today at an all-time high: even 45% testifying that, far from seeing the advantages of belonging to the group, the market does not identify advantages in the group strategy. 

A gap that obscures the considerable merits of John's management who, starting from a NAV of 4 billion in 2009, the group has risen to 33 billion while the value of the share has jumped from around 9 to 80 euros thanks to the enhancement of Classic Ferrari for sale, Cnh and the moves they led, with the crucial contribution of Sergio Marchionne, to the successful adventure of Fiat Chrysler before, at the control of 14% of Stellantis. 

Philips' turning point: this is how Elkann bets on the health business

Now, after starting the adventure in luxury with the purchase of Louboutin, the last bet concerns health care. Exor, taking advantage of a difficult pass in the raise of Philips, crippled by the damage caused by the sale of defective biomedical equipment in the US, has invested 2,6 billion euros for 15% of a company that is a symbol of the Dutch economy, pledging not to cross the 20% threshold. “as always we will be friendly shareholders, but with a careful eye” declares Suzanne Heywood, the group's coo, specifying that “we will be critical but for a good purpose. We will not act like activists."

As the story of one of the great European family dynasties imposes which, like the Swedish Wallembergs, has unreservedly embraced the logic of value creation and today tries to apply it with tenacity. Next to the car, therefore, grows the luxury (Ferrari in the lead +40% on the stock market since January, followed by Louboutin and the Chinese Shang Xia) and, the latest addition, the sector health: first a share of the French Merieux (on whose board John sits), then 45% of the Italian LifeNet Healthcare.

The neo of Juventus

Finally, the Ingot, or the investment company that Elkann has entrusted to the leadership of George Osborne, the former Chancellor of the Exchequer of the United Kingdom. A way to reaffirm the closeness to the world of British business and politics (see the control of the Economist) which is combined with the traditional relationship with France and the more recent connections with Holland. With all due respect to the grudges of the sovereign right for the attitude of the group's newspapers in the Bel Paese which will not prevent Stellantis from closing the negotiations for a greater commitment of the group in Italy. Alas, a signal for the appeal is missing Juventus, the only true Exor cross. We remain firm to the dry denial to Reuter who in the summer had spoken of agreements to strengthen the club with international shareholders. But let's not forget: John is a man of deeds, not of words.