Reuters reports that Copenhagen-based Saxo Bank, Retail FX and CFDs, has invited investment banks to take a role to help sell the company.
The sale process is expected to begin later this year, depending on overall market (and company) conditions.
Reuters cited people familiar with the matter as saying a sale could value Saxo Bank at around 1.5 billion to 2 billion euros ($1.6 billion to $2.1 billion), although that amount is an estimate and of course preliminary.
Discussions at this stage range from pursuing an outright sale of the company to selling a minority stake to Saxo Bank with a subsequent route to providing liquidity to the company’s existing shareholders.
The main shareholders of Saxo Bank are the Chinese group Geely Group (known increasingly for its electric cars) which owns just under 50% of Saxo (49.88%), CEO Kim Fournais through the company Fournais Holding of (28.09%) and Finnish insurance group Sampo (19.83). %), which is in the process of transferring its shares to the Mandatum unit.
Saxo Bank sought to go public in 2022 through a merger with a special purpose acquisition company (SPAC) listed on the Euronext Amsterdam stock exchange. The deal, which would value Saxo Bank at around 2 billion euros, would provide liquidity to Geely and Sampo which at the time both expressed their desire to exit Saxo Bank’s respective investments. However, the transaction was withdrawn later that year.
While Saxo Bank is a long-term leader and is often seen as the ‘Steady Road’ of the FX and CFDs industry, the company’s performance has slowly fallen as Saxo Bank posted its first half-year loss in several years in Q2 half of 2023. , without growth at its peak. Last month, Saxo Bank hit a multi-year low in its core trading volume.
We will continue to follow this story as it develops.