Saxo Bank Explores Sale with Investment Bankers

Saxo Bank explores potential sale, inviting investment bankers amid shifting market conditions and performance challenges.

Key Points

• Saxo Bank has begun talks with investment banks to sell the company, signaling a potential strategic shift.
• The estimated sale value ranges between €1.5 and €2 billion. Major stakeholders, including Geely Group and CEO Kim Fournais, are monitoring potential liquidity events.
• Previous attempts at a public offering failed. Recent performance struggles include the company’s first semi-annual loss and stagnant growth.
• The sale could reshape the financial brokerage industry, with observers watching for potential shifts in the competitive landscape.

Copenhagen-based Saxo Bank is making strategic moves, signaling a potential sale. According to Reuters, the retail FX and CFDs broker has initiated talks with investment banks to facilitate the process.

While no official timeline has been set, sources familiar with the matter anticipate the sale process to kick off later this year. The initiation of the sale hinges on market conditions and the company’s overall state.

Saxo Bank Explores Sale with Investment Bankers

Estimations regarding Saxo Bank‘s valuation in a potential sale vary, with figures hovering around €1.5 to €2 billion (USD 1.6 billion to $2.1 billion). Nevertheless, these values are preliminary and subject to change as negotiations progress.

At this stage, discussions explore various options, from an outright sale of the company to the possibility of offloading a minority stake, providing a path for liquidity to existing shareholders.

Saxo Bank’s major stakeholders include Chinese conglomerate Geely Group, which holds just under 50% of the company; CEO Kim Fournais through Fournais Holding, with 28.09%; and Finnish insurance group Sampo, which has 19.83% and is currently transitioning its stake to its Mandatum unit.

The potential sale comes after Saxo Bank‘s unsuccessful attempt to go public in 2022 through a merger with a Euronext Amsterdam-listed particular purpose acquisition company (SPAC). The proposed deal, which would have valued Saxo Bank at around €2 billion, aimed to provide liquidity to Geely and Sampo. However, Later that year, the company called off the transaction.

Despite being a stalwart in the FX and CFDs sector, Saxo Bank has experienced a recent downturn in performance. In the latter half of 2023, the company posted its first semi-annual loss in several years, accompanied by stagnant top-line growth. Last month, the company witnessed a multi-year low in its core FX trading volumes.

As Saxo Bank navigates these transitions, market observers keenly await further developments in the potential sale, which could reshape the landscape of the financial brokerage industry.

Also, visit the Stock Broker Talks website for more insights and Reviews.