2023-07-24 15:34:00
More than forty years after being forced, after the victory of the left in 1981, to go through the Stock Exchange box via the Paris Orléans holding company (listed since 1838!), the family business bank Rothschild & Co, present in consulting, private banking and investment banking, will definitely say goodbye to the Stock Exchange. The Paris Orléans group was renamed Rothschild & Co in 2015, against the backdrop of a legal battle with the Swiss branch of the family over the use of this famous surname.
The Rothschild family, via the Concordia holding company, and its partners, often powerful families of industrialists or bankers (Maurel, Dassault, etc.) and the bank’s associates, launched on Monday July 24 a simplified takeover bid for the Rothschild & Cie shares that they do not own.
As of May 31, the Rothschild family and its allies held 55.2% of the capital and 66.1% of the voting rights. The offer will close on September 8. On this occasion, new partners will be present in the capital, such as the Peugeot or Wertheimer families. It should be noted that the Swiss cousin branch of the Rothschild family, the Compagnie Financière Edmond de Rothschild had already left the Zurich Stock Exchange in 2019.
“Fair Price”
The offer price stands at 38.6 euros per share (ie a valuation of approximately 3 billion euros) after the payment of an exceptional dividend of 8 euros and the detachment of the ordinary dividend (1.4 euros). This price offers a premium of 19% compared to the price preceding the announcement of the project last February or 27% on the 60-day average. This award was judged ” fair “ by the independent expert Finexi, mandated by the supervisory board of Rothschild & Co.
Still, the bank is much less valued on its consulting activities than some American competitors, such as Lazard or Moelis & Cie, according to the Finexi report. The latter highlights in particular, to explain this discount, the lesser depth of the consulting market in Europe and stricter prudential regulations than in the United States.
The operation is taking place in a gloomy context for investment banks. The Rothschild bank also warned in June that its net profit would be halved in the first half, or about 125 million euros against nearly 250 million a year earlier. The result for 2023 should be, according to the bank, at around 280 million, against 606 million in 2022. The bank makes more than 60% of its turnover (and half of its profits) in consulting (mergers and acquisitions, capital markets, debt restructuring) while the market for mergers and acquisitions and the primary sector collapsed in the first half of the year.
But all these activities mobilize little capital and thus have a significant leverage effect with the recovery of the market. It is moreover this low need for capital which justifies, according to the Rothschild family, this withdrawal from the rating.
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