Rothschild buyout is right idea, but on the cheap

Rothschild & Co SCA

06/02/2023 12:05

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Liam Proud
       LONDON, Feb 6 (Reuters Breakingviews) - The family
vehicle that controls the 3 bln euro investment bank wants to
take it private. That’s sensible: it gets short shrift from
public markets and doesn’t need access to capital. Yet strip out
a chunky dividend and the price is low, which may set up a
battle with minorities.        
    Full view will be published shortly.
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    CONTEXT NEWS
    The main family vehicle that controls investment bank
Rothschild & Co plans to launch an offer for the 61% of the
company it doesn’t already own, according to a Feb. 6 statement.
    The Concordia holding company, whose members include
Honorary Chairman David de Rothschild and Vice-Chairman Éric de
Rothschild, said it was offering 48 euros per share, including a
1.4 euro per share dividend and 8 euro per share special
dividend. 
    Concordia is discussing terms with members of the larger
family-affiliated shareholder grouping, which includes Édouard
de Rothschild, some of whom may stay on as shareholders and some
of whom will sell out, according to a person familiar with the
matter. 
    The offer would be financed in part by debt held at the
level of the Concordia vehicle, and partly by third-party
investors, who would buy some stock of the shareholders wishing
to sell, according to the same person.
    Shares in Rothschild rose by 17% to 47.10 euros as of 1115
GMT on Feb. 6.
 (Editing by George Hay and Oliver Taslic)
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