Saxo Bank Reviews Strategic Options with Goldman Sachs

Saxo Bank has announced that its major shareholders—China’s Geely Group, co-founder and CEO Kim Fournais through Fournais Holding A/S, and Finland’s Mandatum Group—are initiating reviews of strategic opportunities. This move aims to establish the best conditions for Saxo Bank’s continued growth, enhanced client and partner service, and the development of its workforce and company culture.

Saxo Bank and its shareholders have appointed Goldman Sachs as their financial advisor to assist in this strategic review. Goldman Sachs’s role will be crucial in evaluating potential strategic options, including the possibility of a sale, an initial public offering (IPO), or potentially both, depending on which route proves most advantageous.

Historically, such reviews often signal that shareholders are considering an exit strategy. Goldman Sachs typically receives a modest upfront retainer and a substantial fee upon completing a sale or IPO.

Saxo Bank Reviews Strategic Options with Goldman Sachs

In April, it was reported that Saxo Bank was discussing a possible sale with investment banking advisors. Geely Group and Mandatum, Saxo’s largest external shareholders, have expressed a desire to exit their investments in the company.

Previously, Saxo Bank sought to go public in 2022 through a merger with a special purpose acquisition company (SPAC) listed on Euronext Amsterdam. Moreover, the proposed deal, which would have valued Saxo at approximately €2 billion, aimed to provide liquidity for Geely and Sampo (which later transferred its stake to Mandatum). However, this transaction was eventually called off.

Despite Goldman Sachs’ reputation as a leading investment banking advisor, it may face challenges in achieving a valuation near the €2 billion mark, especially given recent performance trends. Saxo Bank experienced its first semi-annual loss in several years during the second half of 2023, and initial 2024 results have shown little improvement. Furthermore, in May 2024, client trading volumes dropped by 20% and declined to $371.6 billion in June, down 4% from the previous month. Core FX trading volumes hit a multi-year low of $78.1 billion in June.

Adding to the challenges, Saxo Bank recently informed its institutional partners of a decision to cease onboarding clients in several countries, including Brazil, Canada, China, Cyprus, Egypt, India, Indonesia, New Zealand, South Africa, Taiwan, and Turkey.

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