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 it said it was in talks with banks and investors to finance an offer for the 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 made at the price of €48 (£43, $52) per share with dividends attached.
Rothschild & Co plans to propose shareholders at its annual general meeting the payment of an ordinary dividend of €1.4 per share and an exceptional distribution of €8 per share to be paid only if Concordia files its offer and subject to the favourable opinion of the supervisory board. Concordia’s offer price would then be adjusted, according to the sums already distributed.
The holding company 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.”