Zhejiang Geely, the Chinese automotive company that also owns Volvo and the London Taxi Company, is buying about 30 percent stake in Saxo Bank.
Through this deal, Saxo’s co-founder and former chief executive, Lars Christensen, will sell his 25.7 percent stake to the Chinese group.
Minority stakeholders are expected to exercise tag-along rights, which would drive Geely’s stake in Saxo to 30 percent.
If other minority shareholders sell their stake to Geely Group, this will enable the Chinese conglomerate to become the largest shareholder in Saxo Bank.
Co-founder Kim Fournais owns 25.71 percent, TPG Capital owns 29.26 percent and Indonesia’s Sinar Mas Group has a 9.9 percent ownership stake.
“We look forward to partnering with Saxo Bank through this transaction to expand Geely Group’s activities in the financial services sector. We expect to deliver group synergies from the development of financial services both within Geely Group and the wider Chinese market,” said Daniel Donghui Li, Chief Financial Officer and Executive Vice President of Geely Group.
The transaction is expected to be finalized by the fourth quarter of 2017. The parties did not unveil the price paid by Geely.
Expansion to China
Saxo Bank opened a China office in the Shanghai Free-Trade Zone in September 2015. Since then, the bank has inked extensive financial technology partnerships as part of its Greater China strategy.
“Geely Group has shown an impressive ability to foster sharp and solid profitable growth in their portfolio companies, and it has a deep understanding of Scandinavian business values and culture. Geely is well known for its strong power of execution, compliance awareness and entrepreneurial spirit. I look forward to taking Saxo Bank to new highs together with our shareholders and employees. I am confident that partnering with Geely creates an even stronger foundation to capitalize on the many global opportunities and not least in the growing Chinese and Asian markets,” said Kim Fournais, Saxo Bank’s co-founder and CEO.
Saxo Bank is the online multi-asset trading and investment specialist based in Copenhagen. It offers trading in more than 30,000 instruments, including forex, binary options, stocks, CFDs, futures and bonds. It is regulated by Denmark’s Financial Supervisory Authority (FSA).