The Rothschild family is attempting a buy-out of Rothschild & Co taking the French bank off the public market, in a deal valuing the company at €3.7bn (£3.3bn).
In a statement released this morning, Concordia, the holding company of the Rothschild family and the bank’s largest shareholder, said it intends to offer €48.0 per share for the remaining shares in the company.
This offer price, which includes dividends, would reflect a premium of 19 per cent over the closing share price on Friday. Shares rocketed 19 per cent this morning.
“None of the businesses of the group needs access to capital from the public equity markets,” the statement said.
“Each of the businesses is better assessed on the basis of their long-term performance rather than short-term earnings. This makes private ownership of the group more appropriate than a public listing,” Concordia concluded.
While Concordia holds 38.9 per cent of the share capital, the enlarged family concert currently holds 54.5 per cent and 66.8 per cent of the voting rights.
It intends to file the offer by the end of the first half, noting it is currently in “advanced negotiations” with investors and banks to finalise the financing of this offer.
If the offer is filed and if the legal conditions are met, Concordia will apply for a squeeze-out.
The firm will also propose a €8 exceptional dividend, should Concordia decide to file its offer.
The Rothschilds have a history across European banking going back several hundred years, with Rothschild money helping to finance the Duke of Wellington’s victory over Napoleon in 1815.
The French and UK branches of Rothschild were merged in 2012 in a consolidation to help it compete with larger and younger rivals. The merger also put an end to the cross-Channel rivalry between the two banks.
The bank is currently led by Alexandre de Rothschild, who has been in place since 2018.