Swiss private bank J. Safra Sarasin Group has agreed to buy 70% of Denmark’s Saxo Bank in a deal valued at around 1.1 billion euros ($1.19 billion), Saxo Bank said on Monday.
Reuters reported last year that the Danish group, which offers digital trading and investment services, was exploring different strategic options including a sale.
In a statement Safra Sarasin said it had agreed to buy Finnish Mandatum’s 19.8% stake as well as the 49.9% stake of Chinese group Geely, while Saxo Bank’s CEO Kim Fournais would stay in his role and retain his stake of 28%.
“Saxo Bank’s proven expertise in digital investments and trading platforms perfectly complements J. Safra Sarasin’s heritage of bespoke wealth and asset management solutions,” the Swiss bank said.
The deal aims to boost the potential of J. Safra Sarasin, which has client assets of $247 billion, and Saxo Bank, with $118 billion in client assets, the statement added.
“Our business is pretty much focused on the high-net-worth client segment,” J. Safra Sarasin’s CEO Daniel Belfer told Reuters on Monday. “Saxo can now add the retail [investor] segment, also the institutional trading segment and the wholesale segment which they serve.”
The bank has plans to strike further deals with private banking and asset management companies, he added.
“At the moment, there’s nothing in this space, but there [are] plans. We’re always looking,” he said.
The valuation of all shares in Saxo Bank is about 1.6 billion euros, valuing the 70% stake at about 1.1 billion euros, Saxo Bank said.
“This is not insignificant in terms of size,” said Andreas Venditti, an analyst at Bank Vontobel Bank. “This confirms the transaction market is getting going after the last few years were a bit listless.”
Last month, Swiss wealth manager EFG International said it was acquiring Swiss private bank Cité Gestion.
In a separate statement, Mandatum said it had sold its stake in Saxo Bank for around 319 million euros.
Source: Reuters.com