The Rothschild family intends to privatize Rothschild & Co.

The Rothschild family wants to withdraw their investment bank Rothschild & Co. from the Parisian stock exchange Euronext. The operation is supposed to be carried out through the family-controlled holding company Concordia, which is the largest shareholder of the investment bank with a 38.52% stake, according to press release companies. None of the bank’s divisions (global consulting, wealth and wealth management, and merchant banking) need access to capital in the public equity market, the holding company said in a statement, and given the nature of the business, going private makes more sense.

According to the plan, Concordia will submit a simplified tender offer to purchase non-owned shares of Rothschild & Co. at a price of €48 each, which is 19% higher than their price at the close of trading on Friday. Thus, the purchase of shares will cost the family €1.44 billion. In addition, current shareholders will receive dividends and additional payments totaling €9.4 for each share sold.

This privatization proposal will be considered at the shareholders’ meeting of Rothschild & Co. May 25 this year.

Against the background of the announcement of the upcoming privatization of the investment bank, its shares on Euronext are growing in price by about 17%.

The banking business of the Rothschild family is more than two centuries old, and the current structure of Rothschild & Co. was formed as a result of the merger in 2012 of the French Rothschild Bank and the British NM Rothschild & Sons. Experts remind that the bank took an active part in major European transactions, including Porsche IPOthe nationalization of the German energy company Uniper and association of satellite operators Eutelsat and OneWeb.

Kirill Sarkhanyants