In a strategic move to concentrate on its core business and market, Saxo Bank has sold its share in the regulatory technology (RegTech) platform, Saxo Fintech, to its biggest shareholder, China’s Geely Holding Group. The Danish investment bank declared the sale today, signalling a shift in its ownership structure.
Geely Takes Full Ownership of Saxo Fintech
Saxo Fintech, previously known as Saxo Geely Tech Holding A/S, is a fintech company established in 2019. Its purpose is to offer RegTech and financial solutions to banks, brokers, and other fintech firms in Mainland China. The company was owned jointly by Saxo Bank and Geely.
Initially, ownership of Saxo Fintech was equally divided between both entities. However, pending regulatory approval, Geely Holding Group will fully own the venture post-sale.
After carefully evaluating, Saxo Bank decided to divest its stake in the RegTech firm. Consequently, Geely will acquire all of Saxo Bank’s shares in Saxo Fintech.
As part of this deal, Saxo Bank will receive its own shares, equivalent to around 2% of the outstanding Saxo Bank shares, as stated by the licensed Danish bank.
The transaction will impact Saxo Bank’s current ownership structure. Despite remaining the majority owner, Geely will reduce its stake from 52% to 49.88%. Furthermore, the CEO, Kim Fournais, will own 28.90% of Saxo Bank, while Finnish insurance company Sampo holds 19.83%, and minority shareholders retain 2.20% ownership.
Saxo Bank Hits New Milestones
The decision to divest coincides with Saxo Bank’s client assets soaring fivefold in five years, surpassing $100 billion. The online trading platform also recently reached a record one million clients.
Nevertheless, the company states that this strategic divestment aligns with its commitment to optimize operations and concentrate on core markets and clientele.