A holding controlled by the Rothschild family is planning to take the eponymous French bank private in a deal that values it about €3.7 billion.
(Bloomberg) — A holding controlled by the Rothschild family is planning to take the eponymous French bank private in a deal that values it about €3.7 billion.
Concordia is planning to file a tender offer for Rothschild & Co’s shares at €48 apiece, the bank said in a statement Monday. The holding, which owns 38.9% of the firm’s shares and 47.5% of the voting rights, intends to implement a squeeze-out afterward.
Rothschild’s shares rose as much as 18.5% at market open in Paris Monday.
The Paris-based firm, which ranked 6th globally in the number of mergers and acquisitions it advised on last year, has been expanding its footprint in the US in recent years. In spite of a tumultuous environment for dealmaking, Rothschild posted an increase in revenue in every quarter of 2022. The bank is expected to release full-year earnings on Feb. 13.
The lender intends to offer a €1.4 dividend to shareholders at its next annual general meeting on May 25. The firm will also propose a €8 exceptional dividend, should Concordia decide to file its offer. The price of the offer would be adjusted downwards by those amounts.
Concordia, which is currently in advanced negotiations with investors and banks to finalize the financing of the deal, intends to file its offer by the end of the first half of 2023.
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