Agnelli family’s Exor to buy Italian media group GEDI
Dynasty’s scion John Elkann tees up takeover of la Repubblica and la Stampa owner
John Elkann, scion of the Agnelli industrial dynasty and chairman of Fiat Chrysler Automobiles, is to acquire Italy’s leading media group after striking a deal with the billionaire De Benedetti family.
Exor, the Agnelli family investment company, agreed late on Monday to buy a 43.7 per cent stake in GEDI for €102.4m from CIR, the holding company of the De Benedetti dynasty, the companies said in a statement.
Once Exor, which already owns 6 per cent of GEDI, has acquired CIR’s 43.7 per cent stake it will launch a public tender offer for the outstanding shares. CIR will retain a 5 per cent stake in GEDI through an investment in a new corporate entity set up by Exor to control the group.
GEDI owns the left-leaning La Repubblica and centrist la Stampa national daily newspapers, a dozen regional and local titles, national investigative weekly magazine L’Espresso and leading national radio station Radio Deejay.
Shares in GEDI, which stands for Gruppo Editoriale Spa, were up 60 per cent in early trading, in line with the offer price.
The agreement, the latest in a deal spree by Mr Elkann, comes shortly after Fiat Chrysler and French carmaker Peugeot agreed to combine, a transaction due to complete in the next few weeks. Exor also holds a 43.4 per cent stake in the publisher of UK-based news magazine The Economist.
Mr Elkann, chairman and chief executive of Exor, said the company was “committing to a rigorous entrepreneurial project” and would use its media experience “to accelerate the necessary technological and structural transformation”.
“We’re convinced that quality journalism has a bright future so long as it can combine authority, professionalism and independence with the requirements of its readers, today and in the future,” he added.
The Agnelli dynasty has a history of media ownership — a passion of Mr Elkann’s grandfather, the statesman-industrialist Gianni Agnelli.
The deal will mark the end of the De Benedetti family’s three decades as controlling shareholder of Italy’s largest media group.
La Repubblica has struggled with falling readership in recent years, leading to a public dispute between Carlo De Benedetti and his sons over the management of the media group, a spat that accelerated its sale.
Rodolfo De Benedetti, one of the sons, said the family had decided “to hand over to a shareholder of the highest calibre . . . that understands very well the challenges of the publishing business”.
“Exor’s international experience will add to its ability to support the group in its digital transformation,” he added.