MILAN--Italy's Exor SpA (EXO.MI) said Monday it has sold its
entire stake in SGS SA (SGSN.VX) of Switzerland to a Belgian
investment company for 2 billion euros ($1.54 billion), resulting
in a consolidated capital gain of EUR1.5 billion.
Exor, an investment company best known for its controlling stake
in Fiat SpA (F.MI), the Italian automaker, said in a statement it
had reached a definitive agreement to sell 1.2 million shares in
SGS to Groupe Bruxelles Lambert (GBLB.BT) at 2.125 Swiss francs
($1.712) apiece.
Exor said the stake represented about 19% of its gross asset
value.
"The proceeds of the sale will be deployed, over time, in new
investment opportunities," it said in a statement.
It added that the deal is expected to be settled by June 10.
Based in Geneva, SGS offers services in inspection,
verification, testing and certification, for everything from raw
materials to consumer goods.
Exor Chief Executive John Elkann told analysts on a conference
call last Thursday the investment company planned to sell stakes in
businesses it no longer considered core in order to focus on fewer
but bigger investments.
Speaking to reporters at Exor's annual shareholders meeting on
the same day, Mr. Elkann hinted at the company's likely
availability should Fiat need to raise capital to complete its
acquisition of U.S. partner Chrysler Group LLC, in which it already
owns 58.5%.
Write to Gilles Castonguay at gilles.castonguay@dowjones.com
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