The family Rothschild prepares to leave Bshe-bear of Paris after 185 years. Concord, the family-owned holding company and largest shareholder of Rothschild & Co, is set to file anopa aimed at delisted for the shares of the investment bank at 48 euros each. The news was well received by the market: on the Paris stock exchange the title earns 16,89% at 47,05 euros per share.
The Rothschild family plans to privatize its namesake French bank in a deal valued at around €3,7 billion ($4 billion), ending decades of public ownership for one of the most illustrious names in global finance.
The acquisition plan will be presented to shareholders on 25st May, said the investment bank specializing in asset management and investment banking. As part of the offer, the "payment of an ordinary dividend of 1,4 euros per share" is proposed, as well as "an exceptional distribution of 8 euros per share, the payment of which would take place only if Concordia presents the offer".
Un updating on the operation is expected on February 13 when Rothschild will present the annual data. Here are the details of the takeover bid aimed at the delisting of the Rothschild family.
Rothschild says goodbye to the Paris Stock Exchange: the structure of the takeover bid
The family holding company, Concordia, intends to present a takeover bid for the shares of Rothschild & Co at 48 euros each, “a premium of 19% compared to Friday's closing price and 27%, 34% and 36% respectively compared to the volume-weighted average price of 60, 120 and 180 days before that date, as well as a 15% premium compared to the all-time high reached on January 13, 2022,” according to the holding company in a statement. The holding already owns 38,9% of the company's shares and 44,5% of the voting rights.
The Rothschild family package rises to 54,5% of the capital and 66,8% of the voting rights, if the other branches of the dynasty are also considered. The Concordia holding has already started negotiations with other investors and banks to finalize the structure of the offer.
The reasons for the delisting
Rothschild, initially Paris-Orléans, has been listed in Paris since 1838. The decision of the founders to say goodbye to the stock exchange is justified by a note from the bank according to which “none of the group's businesses need access to capital from public stock markets. Additionally, each of the assets are best valued based on their long-term performance rather than short-term earnings. This makes the Private property of the most appropriate group of one public listing, specifies the holding company in the press release which concludes: "The offer could be filed with the Autorité des marchés financiers, the supervisory body of the French stock exchange, by the end of the first half of 2023 and is subject to obtaining the required authorizations ”.
