Asset management group J Safra Sarasin (JSS) is set to become the majority shareholder of Danish brokerage group Saxo Bank.
The Swiss group will buy out Geely – a Chinese automaker, which owned 49.9% of the business – and Finnish financial services group Mandatum, which held a 19.8% stake in Saxo Bank.
JSS said the deal values Saxo Bank at $1.7 billion, which would imply they paid just shy of $1.2bn for the 70% position in the business.
Saxo Bank CEO and Co-Founder Kim Fournais still holds 28% of the company. In a statement, JSS said that Saxo Bank will operate as a standalone business.
“This strategic acquisition represents a significant milestone for J. Safra Sarasin,” said JSS Chairman Jacob Safra. “It creates new opportunities for expansion and further increases our competitive edge, while reflecting our unwavering multi-generational commitment to entrepreneurship, sustainability and client success.”
JSS may be able to provide some pathways for Saxo Bank to grow. For example, if it has relationships with wealth managers that Saxo can sell its platform and technology to.
However, what’s also plausible is that Safra saw an opportunity to acquire the firm at a good valuation.
The shareholders that they bought out have been trying to exit Saxo for years now. A potential reverse merger fell through in 2023 and there have been repeated reports about a potential sale since then.
JSS is owned by the wider Safra banking group, which is still family owned and is unlikely to have any desire or plans to go public in the future.
Consequently, they will be happier to milk a company that is highly cash generative and which they didn’t have to pay a crazy amount of money for.
Saxo Bank recently announced record revenues for 2024, although that was driven entirely by higher interest rates.
