Saxo Bank implemented a strategic move by selling the stake to China-based Geely Group. The Danish bank decided to refocus on its core business.
Saxo Bank announced a change in its ownership structure after selling its stake in the regulatory technology (RegTech) platform, Saxo Fintech, to Geely Holding Group. The investment bank aimed to focus more on its core business and market. The Geely Holding Group is the largest shareholder, so this transaction greatly benefits Saxo Bank's marketing strategy.
"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.
Saxo Geely Tech Holding A/S is a fintech firm owned together by Saxo Bank and Geely since 2019. It provides financial and RegTech solutions to financial institutions in Mainland China. Banks, brokers, and fintech are the users of the firm's service. Previously, the acquisition of Saxo Fintech was fifty-fifty among both companies. During the regulatory approval to sell, Geely Holding Group took control the most.
However, when the Danish Bank sold the share, Geely purchased it, and the ownership was altered. Geely is still the majority owner of 49.88% shares. The CEO, Kim Fournais, will own 28.90% of Saxo Bank, while a Finnish insurance company, Sampo retains 19.83%, and the minority shareholders have 2.20% ownership. Rather than a traditional cash transaction, Saxo Bank will receive its shares in return.