Saxo Bank Sells Stake in RegTech Firm to Majority Owner Geely Group

Saxo Bank Sells Stake in RegTech Firm to Majority Owner Geely Group

Time Stamp: June 29, 2023 9:20 AM
Saxo Bank Sells Stake in RegTech Firm to Majority Owner Geely Group PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Saxo Bank
has sold its stake in the
regulatory technology (RegTech) platform, Saxo Fintech, to its largest
shareholder, China-based Geely Holding Group, in a major move targeted at
“strengthening its focus on core business and market.” The Danish investment
bank and online trading provider announced the sale today (Thursday), noting a
change in its ownership structure.

Saxo
Fintech, formally called Saxo Geely Tech Holding A/S, is a fintech firm previously
jointly owned by Saxo Bank and Geely. It was launched in 2019 to provide financial and RegTech
solutions to financial institutions such as banks, brokers and fintech firms in
Mainland China.

The
ownership of Saxo Fintech was previously evenly split among both companies.
However, once the sale, which is still subject to regulatory approval, is
ratified, the venture will be completely controlled by Geely Holding
Group.

Saxo Bank
said it made the decision to sell its stake in the RegTech firm “after a
process of diligent evaluation and strategic assessment.” As a result, Geely
will purchase all shares the Danish bank previously held in 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,” the fully regulated
and licensed Danish bank said in a statement.

The move
will also affect the current ownership structure of Saxo Bank, which provides
online trading and investment services to retail and institutional clients.
While Geely remains the Danish multi-asset broker’s majority owner, the deal will reduce its stake
from 52% to 49.88%.

Furthermore,
Saxo Bank will be owned at 28.90% by CEO Kim Fournais, with Finnish insurance
company Sampo holding 19.83% and minority shareholders claiming 2.20% ownership
in the company.

Saxo Bank
Mark Milestones

The
divestment move comes at a time Saxo Bank’s client assets quintupled in five
years, topping
$100 billion. The online trading platform provider also recently hit a record-high one
million clients on its platform.

However,
the firm said that the “strategic
decision” to divest fits into its “ongoing commitment to optimise its business
operations and focus on core markets and clients.”

AvaTrade’s veteran joins GKFX; Nasdaq welcomes 60 IPOs; read today’s news nuggets.

Saxo Bank
has sold its stake in the
regulatory technology (RegTech) platform, Saxo Fintech, to its largest
shareholder, China-based Geely Holding Group, in a major move targeted at
“strengthening its focus on core business and market.” The Danish investment
bank and online trading provider announced the sale today (Thursday), noting a
change in its ownership structure.

Saxo
Fintech, formally called Saxo Geely Tech Holding A/S, is a fintech firm previously
jointly owned by Saxo Bank and Geely. It was launched in 2019 to provide financial and RegTech
solutions to financial institutions such as banks, brokers and fintech firms in
Mainland China.

The
ownership of Saxo Fintech was previously evenly split among both companies.
However, once the sale, which is still subject to regulatory approval, is
ratified, the venture will be completely controlled by Geely Holding
Group.

Saxo Bank
said it made the decision to sell its stake in the RegTech firm “after a
process of diligent evaluation and strategic assessment.” As a result, Geely
will purchase all shares the Danish bank previously held in 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,” the fully regulated
and licensed Danish bank said in a statement.

The move
will also affect the current ownership structure of Saxo Bank, which provides
online trading and investment services to retail and institutional clients.
While Geely remains the Danish multi-asset broker’s majority owner, the deal will reduce its stake
from 52% to 49.88%.

Furthermore,
Saxo Bank will be owned at 28.90% by CEO Kim Fournais, with Finnish insurance
company Sampo holding 19.83% and minority shareholders claiming 2.20% ownership
in the company.

Saxo Bank
Mark Milestones

The
divestment move comes at a time Saxo Bank’s client assets quintupled in five
years, topping
$100 billion. The online trading platform provider also recently hit a record-high one
million clients on its platform.

However,
the firm said that the “strategic
decision” to divest fits into its “ongoing commitment to optimise its business
operations and focus on core markets and clients.”

AvaTrade’s veteran joins GKFX; Nasdaq welcomes 60 IPOs; read today’s news nuggets.

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