The family plans to buy all publicly held Edmond de Rothschild (Suisse) bearer shares at around CHF 18 apiece and delist the company from the Zurich stock market in a deal worth about $98 million.
Wednesday 13, March 2019
(Bloomberg)--Benjamin de Rothschild’s family plans to take its Swiss bank private as it simplifies the group’s structure and prepares for expansion and potential acquisitions in the country’s fragmented wealth-management industry.
The French operations will be consolidated into the Swiss bank, with Vincent Taupin promoted to chief executive officer.
Ariane de Rothschild, the President of the Group’s Executive Committee, said, “My role has been to simplify the group’s structure, which was very complicated and lacked transparency, and to ensure the group’s longevity and stability.”
“I am passing the torch on to Vincent and to the teams with full confidence, the group has been cleaned up and is in working order now,” added de Rothschild.
In a statement, the Edmond de Rothschild Group, stated that it has more than CHF 170 billion of assets under management and more than CHF 1.1 billion of revenue,
The changes in the legal structure will not lead to job cuts, said Ariane de Rothschild, who took the helm of the group in 2015. The changes also come amid widespread speculation that further consolidation is needed in the Swiss private banking industry, with analysts and bank executives suggesting the industry is too fragmented with profit margins under pressure.
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Edmond de Rothschild had net income of CHF 222 million last year, helped by non-recurring gains, while its operating result was 120 million.