Saxo Bank is considering selling its business, according to Reuters. This latest development comes after merger talks collapsed 18 months ago, with news that the Danish bank is looking for investment bankers to advise it on possible options.

Exploring possible options

The sale of Saxo Bank is valued at between €1.5 billion and €2 billion, which is considered a big deal in the industry. While details of the deal are not yet known, sources who wished to remain anonymous told Reuters that Saxo Bank is considering selling a majority or minority stake.

Currently, Chinese automaker Geely owns nearly 50 percent of Saxo Bank, with CEO Kim Fournais holding 28 percent and Finnish insurer Sampo holding nearly 20 percent. Geely and Saxo Bank have yet to comment on the matter, while Saxo Bank is reportedly considering selling its holdings to its asset management spinoff Mandatum.

Saxo Bank's partnership with a special-purpose buyout firm ends in 2022 due to tough market conditions. However, Furness hinted at future opportunities, leaving the door open for public and private deals.

Geely Group acquisition

Last year, Saxo Bank sold a stake in regulatory technology (RegTech) platform Saxo Fintech to Geely Holding Group. The move marked a significant shift in the company's ownership structure. Saxo Fintech, formerly known as Saxo Geely Tech Holding A/S, is a fintech company jointly owned by Saxo Bank and Geely. The company was established in 2019 to provide financial and regulatory technology solutions in mainland China.

The decision to divest Saxo Fintech is aimed at optimizing business operations and focusing on core markets and customers. As part of the transaction, Saxo Bank acquired its own shares, equivalent to approximately 2% of Saxo Bank's outstanding shares.

The fully regulated and licensed Danish bank said: "As part of the transaction, Saxo Bank is acquiring its own shares, which correspond to approximately 2% of Saxo Bank's issued shares."