Deal reunites groups in a relationship that dates back to the days of Empire
Jardine Strategic Holdings will pay US$185 million for a 20 per cent stake in the parent company of NM Rothschild & Sons, in a deal that reunites the hong with its 19th century European peer and marks Jardines' return to the investment banking sphere after a seven-year absence.
Jardines Strategic is buying the interest in Rothschild Continuation Holdings (RCH) from British insurer Royal & Sun Alliance, which has been a passive investor in the Rothschild family's investment banking arm since 1980.
It is one of two Singapore-listed holding firms, alongside Jardine Matheson Holdings, through which the Britain-based Keswick family controls an Asian business empire encompassing Hongkong Land Holdings, Mandarin Oriental International, Dairy Farm and Jardine Cycle & Carriage.
Jardine Matheson left a 28-year investment bank venture with Robert Fleming in 1998. Two years later it sold a residual 13 per cent stake in Robert Fleming to Chase Manhattan for a US$1.03 billion gain.
Jardine Strategic will appoint two executives to RCH's board but will not take an active role in Rothschild's operations. 'They will be a shareholder but not involved in management,' RCH chairman David de Rothschild said, adding: 'The [Rothschild and Keswick] families have been friendly for many, many years.'
In a statement, Jardine Matheson Group chairman Henry Keswick welcomed the reunion of the two firms, whose relationship dates back to the early 19th century. 'In making this strategic investment our group is renewing a relationship that began in 1838 when we first acted as agents for Rothschild in China,' Mr Keswick said.