Saxo Bank is abandoning its plan to go public by terminating a merger deal with SPAC to list the company on Euronext Amsterdam.
The Danish Financial Supervisory Authority-regulated broker, Saxo Bank, terminated a merger deal with blank check firm, Disruptive Capital Acquisition Company (DCAC), that would have helped the broker go public. In mid-September, an agreement was reached between Saxo and SPAC to list the company on the Euronext Amsterdam exchange.
The Denmark-headquartered brokerage initially entered into a merger to diversify its shareholder base while raising the company's profile and accelerating its growth strategy.
Saxo doesn't have any major issues with the listing. However, Geely Financials Denmark A/S and Sampo Plc, two of Saxo's current shareholders, are considering liquidating their holdings. On the other hand, several Board Members and senior management, including the CEO of Fournais, intend to increase their shares.
Saxo's SPAC partner, DCAC, listed itself on Euronext Amsterdam last October, raising £125 million. Should this merger materialize, DCAC shareholders will receive Saxo shares followed by the delisting and liquidation of SPAC.
"It has after careful consideration been determined that the timing is not optimal. DCAC is contemplating its options, taking into account its business combination deadline of 11 January 2023, subject to potential extension," the press release announced.
Apart from Saxo Bank, eToro also failed to go public a few months ago. The retail broker abandoned its plans for a SPAC merger with blank check firm Betsy Cohen because the two companies were unable to complete a deal by the deadline.