The Rothschild family buys back the family bank and takes it off the stock market
The iconic Rothschild family, whose amassed wealth is by some accounts one of the world's greatest fortunes, albeit well hidden, is planning to privatize its flagship investment bank, Rothschild & Co. The bank, whose predecessors helped finance the Duke of Wellington's victory over Napoleon in 1815 at the Battle of Waterloo, announced on Monday that its main shareholder is planning a takeover bid worth around €3.7 billion, equivalent to 4 billion dollars.
The move, which comes at a time when many of his peers are going the other way and seeking capital on the stock markets, would end the listing of a company that has, in one form or another, been on the stock exchange since 1838. , according to a spokeswoman. As Bloomberg notes, the private takeover will mark the latest step in the family's efforts to consolidate control, following a 2012 reorganization that effectively brought the French and UK operations under one roof and streamlined the organizational structure.
Like most contemporary independent investment banks, the Paris firm generates the majority of its revenues by providing financial advice to what can easily be called the world's largest client list, although it also has an asset management unit and asset management and a merchant banking business. His most recent consultancies include the restructuring of the Porsche group and the nationalization of Uniper. Led since 2018 by 42-year-old Alexandre de Rothschild (whose great, great, great, great grandfather is Mayer Amschel Rothschild, founder of the Rothschild dynasty), the bank has expanded into the United States and managed to avoid much of the market crash operations advisory, ranking sixth in number of mergers and acquisitions last year according to Bloomberg.
Rothschild & Co has three divisions: global advisory, wealth management and merchant banking. “None of the group's businesses need access to public equity market capital,” Concordia, the family holding company, said in a statement at a time when many of its competitors are struggling with consultancy revenues. “Furthermore, any asset is best valued on its long-term performance rather than short-term earnings. This makes the private ownership of the group more appropriate than a public listing”, because the long term is typical of the family perspective.
The Rothschild family's intention to take its boutique private is in contrast to the past two decades, when a wave of small consultancies, such as Evercore and Lazard, sought to go public in the United States.
Concordia, which is the Rothschild family holding company and already owns 38.9% of the company's shares and 47.5% of the voting rights, said it plans to offer €48 per share, a 19% premium over at Friday's closing price for the stock he doesn't yet own. Rothschild shares rose 17% to 47 euros. An attractive value that will attract many shares from the market.
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The article The Rothschild family buys back the family bank and takes it off the stock market comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-famiglia-rotschild-si-ricompra-la-banca-di-famiglia-e-la-toglie-dal-mercato-azionario/ on Tue, 07 Feb 2023 10:00:30 +0000.