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Owners Of France's Rothschild & Co Want To Take It Private
The group said that none of the businesses in the Rothschild group need to have access to public stock markets.
Concordia, the holding company of the French branch of the Rothschild dynasty and the largest shareholder of Rothschild & Co, wants to take the Paris-based bank private. The group said yesterday that it intends to file a “simplified” tender offer for the firm’s shares at €48.0 ($51.6) per share.
The offer price reflects a premium of 19 per cent over the closing share price on 3 February, Rothschild & Co said in a statement.
The company holds 38.9 per cent of the share capital and 47.5 per cent of the voting rights. Concordia is in “advanced negotiations” with investors and banks to finalise financing this offer.
None of the businesses of the Rothschild group need access to capital from the public equity markets, Rothschild said.
“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,” it said.
The plans for the change will be put to shareholders at Rothschild & Co’s annual general meeting on 25 May 2023. This will include proposing payment of: an ordinary dividend of €1.4 per share as well as, subject to the favourable opinion of Rothschild & Co supervisory board, an exceptional distribution of €8.0 per share which would be paid only if Concordia decides to file this offer.
The offer price, at the time of its filing, would be adjusted downwards by the amounts so distributed, it said.