Saxo Bank Sells Stake In Saxo Fintech To Geely Holding
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Saxo Bank has announced the sale of its stake in Saxo Fintech, a regulatory technology company. The stake has been sold to the company’s largest shareholder, Geely Holding Group.
Saxo Bank sells stake in Saxo Fintech
Geely Holding Group is a company based in China. The stake sale is a decision aimed at boosting Saxo Bank’s focus on the market and its core business. The investment bank and online trading platform based in Germany has confirmed the stake’s sale, saying there would be a notable change in ownership.
Saxo Fintech, which was previously known as Saxo Geely Tech Holding A/S, is a fintech firm that was previously jointly owned by Geely and Saxo Bank. The platform was released in 2019, and it offers access to financial and RegTech solutions targeting financial institutions like banks, brokerage platforms, and fintech organizations operating from Mainland China.
Previously, Saxo Bank and Geely had an equal stake at Saxo Fintech. However, after the sale of the stake owned by Saxo Bank is approved by regulators, the RegTech firm will be fully owned by Geely Holding Group.
According to Saxo Bank, the decision to sell its stake in the RegTech firm came after a strategic assessment and diligent evaluation. Geely will also purchase all the shares the Danish banking institution previously held at Saxo Fintech.
“As part of this transaction, Saxo Bank will receive its own shares in return – equivalent to approximately 2% of the outstanding Saxo Bank shares,” Saxo Bank said. “This strategic decision aligns with Saxo Bank’s ongoing commitment to optimize its business operations and focus on core markets and clients.”
The decision to sell the stake will also affect the current ownership structure at Saxo Bank. The bank provides access to a wide range of online trading and investment services. These services target retail and institutional investors.
Geely is the majority shareholder in the Danish multi-asset brokerage platform. The group has announced that it will reduce its stake in the company from 52% to 49.88%. The other change in ownership is that 28.90% of the stake at Saxo Bank will be owned by the bank’s CEO, Kim Fournais.
Sampo, an insurance company based in Finland, will retain 19.83% of the shares at the bank. On the other hand, the minority shareholders will retain a 2.20% ownership of the company.
Saxo Bank marks significant milestones
The decision regarding this divestment comes at a time when Saxo Bank has witnessed significant growth in client assets. Client assets at the company have increased five times to reach $100 billion.
The number of clients at the online trading platform has also increased significantly to reach a record one million. According to the company, the decision to divest its services aligns with its ongoing commitment to optimize business operations as it focuses on clients and the core markets. This is behind the decision to sell its stake at Saxo Fintech.
