Saxo Bank Streamlines; Sells Saxo Fintech Stake
In a strategic effort to enhance its focus on core business and market, Saxo Bank has recently completed the sale of its stake in Saxo Fintech, to its largest shareholder, Geely Holding Group of China. The Danish investment bank and online trading provider announced this change in ownership structure on Thursday.
Saxo Fintech, formerly known as Saxo Geely Tech Holding A/S, was established in 2019 as a joint venture between Saxo Bank and Geely. The merger aimed at delivering financial and RegTech solutions to Mainland China’s financial institutions, including banks, brokers, and fintech firms.
Initially, the ownership of Saxo Fintech was equally divided between the two companies. However, with the completion of the sale, pending regulatory approval, Geely Holding Group will assume full control over the venture.
Saxo Bank decided to get rid of its stake in the RegTech firm after conducting a diligent evaluation and strategic assessment. Consequently, Geely will acquire all the shares previously held by Saxo Bank in Saxo Fintech.
“As part of this transaction, Saxo Bank will receive its shares in exchange, representing approximately 2% of the total outstanding Saxo Bank shares,” stated the fully regulated and licensed Danish bank in an official statement.
The sale will also impact the existing ownership structure of Saxo Bank, a provider of online trading and investment services to both retail and institutional clients. While Geely will remain the majority owner of the Danish multi-asset broker, its stake will be reduced from 52% to 49.88%.
Moreover, Saxo Bank’s CEO, Kim Fournais, will own 28.90% of the bank, while Finnish insurance company Sampo will retain 19.83%. Minority shareholders will maintain a 2.20% ownership of the company. These changes in ownership reflect the evolving dynamics within Saxo Bank’s ownership composition.
Saxo Raised Standard
Amidst a remarkable fivefold growth in client assets over the past five years, reaching a significant milestone of surpassing $100 billion, Saxo Bank has decided to divest its stake in Saxo Fintech. The online trading platform provider also achieved a record-breaking achievement by attracting one million clients to its platform.
The firm emphasized that the decision to divest is aligned with its unwavering dedication to optimizing business operations and prioritizing its core markets and valued clients. This strategic move reflects Saxo Bank’s ongoing commitment to refine its business approach, streamline operations, and concentrate resources on serving its primary markets and meeting the evolving needs of its esteemed clientele.
