Rothschilds to take banking group private in €3.7bn deal
THE Rothschild family is to take its eponymous banking group private as it plots a new course just three months after the death of its London chief.
Concordia, the family-owned holding company and Rothschild & Co’s largest shareholder, said it is planning to table a €48-per-share offer for one of the bestknown names in global finance, which represents a 19pc premium to its closing share price last Friday.
The move values the financial dynasty at €3.7bn (£3.3bn) amid a global slump in deal making.
Rothschild & Co was formed in 2012 following a merger between the thenseparate French bank and UK merchant bank NM Rothschild & Sons.
The group’s history dates back centuries, with the bank known for helping to finance the Duke of Wellington’s victory over Napoleon at the Battle of Waterloo in 1815. Sir Evelyn de Rothschild, who served as chairman of the London branch of the dynasty for 27 years and died last year, also acted as a personal financial adviser to the late Queen Elizabeth II.
The decision to take it private comes amid a prolonged deal-making drought among investment banks, with Wall Street giants including Goldman Sachs forced to axe thousands of jobs.
In its latest results, Rothschild & Co reported revenues of €2.2bn for the first nine months of 2022, with gains in deal advisory and asset management. However, the group warned of a “more challenging year” ahead, with lower deal activity and declining assets under management impacting fee income.
Yesterday, Concordia said: “None of the businesses of the group needs access to capital from the public equity markets. Furthermore, 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, which is in advanced negotiations with investors and banks to finalise the financing of the deal, intends to file its offer by the end of the first half of 2023. It intends to pay out a €1.4 dividend to shareholders at its next annual general meeting on May 25.
Today, Rothschild & Co is run by Alexandre de Rothschild, the son of David, who engineered the 2012 merger. The Paris-based lender has been expanding its footprint in the US in recent years.