The Rothschild family is planning to take its French investment bank Rothschild & Co private in a deal that could value the company at approximately $4bn.
Concordia, the financial dynasty’s holding company, announced that it will offer €48 per share for the nearly 61% of stock of the Paris-listed company.
Currently, Concordia owns nearly 38.9% of shares and 47.5% of the voting rights in the firms.
“Rothschild & Co intends to propose to shareholders at its Annual General Meeting, to be held on 25 May 2023, the payment of an ordinary dividend of €1.4 per share,” the company said in its press statement.
Apart from investment banking services, Rothschild & Co also cemented its presence in wealth management, private equity and debt financing business in the last three decades.
Concordia noted that none of the businesses of the group “needs access to capital from the public equity markets.”
“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,” the company’s press statement read.
The investment bank, which once employed current French President Emmanuel Macron, has been bolstering its US investment banking business off late. Shareholders will also receive an exceptional dividend of €8 per share if Concordia decides to file this offer.