The Rothschild family’s holding company, Concordia, has set out plans to buy out the shares in financial services giant Rothschild & Co.
Concordia has a 38.9% stake in the business and 47.5% of voting rights, and said it is in talks with banks and investors to finance an offer for the more than 200-year-old Paris Stock Exchange-listed company.
The financial services firm has three different arms – global advisory, wealth and asset management, and merchant banking.
Concordia believes Rothschild & Co does not need access to capital from public equity markets and that private ownership would be “more appropriate”.
The holding company’s offer would be up to €48 (£43) per share, which includes an ordinary dividend of €1.40 (£1.25) per share and an exceptional distribution of €8 (£7.14) per share.
Rothschild & Co’s share price closed at €40.25 (£36), before leaping to €47 on Monday, which appears to be a fresh record – at least going back as far as July 1989.
Concordia added: “The filing of the proposed offer would be subject to the receipt of various regulatory approvals. If the offer is filed and if the legal conditions are met, Concordia will apply for a squeeze-out.
“The simplified tender offer could be filed with the Autorité des Marchés Financiers (AMF), the French financial and markets regulator, at the end of the first half of 2023. Concordia wishes to emphasise that the filing of this offer is subject to the finalisation of ongoing negotiations.”
This story originated on our sister publication, International Adviser.
