Saxo Bank Engages Investment Advisers As It Considers Sale

Saxo Bank is considering selling its business, and it is already consulting with investment bankers on the options available.

Saxo Bank has been struggling to remain afloat since a planned merger failed in 2022. The Danish bank is now contemplating a sale as an exit option that will prevent the total closure of its operations,

Saxo Bank Considers Sale

Saxo Bank is valued between 1.5 and 2 billion euros. If such a sale happens, it will have a significant impact on the banking industry. It could also be a strategic sale that will improve the potential buyer’s reach in the banking sector.

According to Reuters, the terms of this sale have yet to be determined. However, the bank is considering an entire sale by selling a majority stake in the firm. It is also open to the acquisition of a minority stake that will inject capital into the business.

The largest shareholder at Saxo Bank is Chinese automaker, Geely, which holds a 50% stake in the firm. The CEO of the firm, Kim Fournais, owns a 28%Vstake while Sampo, an insurer based in Finland owns an around 20% stake in the company.

Stakeholders Are Reacting

Saxo Bank has remained mute on the matter and has not revealed whether it is considering any purchase proposals. However, according to Reuters, one of the stakeholders, Sampo is planning to move its stake in the company to its asset management firm, Mandatum.

As aforementioned, the sale is happening after a failed merger in 2022. At the time, Saxo Bank partnered with a special-purpose acquisition company, but the alliance failed because of the prevailing market conditions.

At the time, the stakeholders at the company remained optimistic that other opportunities would arise in the future.

Geely Holding Group increased its ownership control over the firm after purchasing a stake owned by Saxo Bank in Saxo Fintech. This move marked a significant change in the ownership structure of the bank.

Saxo Fintech was a fintech entity owned through a joint ownership between Geely and Saxo Bank. The firm launched in 2019 to provide financial and technological solutions to clients in Mainland China.

Saxo Bank sold its stake in Saxo Fintech in a bid to optimize its business operations and pay more attention to the clients and the core markets. The transaction was made using Saxo Bank shares. Saxo Bank received its shares in return which were equivalent to around 2% of the outstanding shares at the bank.