Danish multi-asset brokerage company Saxo Bank has announced that it is selling its South Africa-based subsidiary Saxo Capital Markets South Africa (SCMSA). The deal involves the current management of the Johannesburg-headquartered team of SCMSA, teaming up with local Sasfin Holdings Limited to acquire the company.
The deal will not deter business for Saxo Bank in the region as the parties will continue collaborating by using Saxo Bank’s technology to provide clients with access to global markets. Clients of SCMSA will hardly notice any difference as the offering and the trading platforms on offer will remain the same.
The current client base of SCMSA will not need to sign new contracts. The participation of wealth banking group Sasfin warrants a continuing commitment to growing the business in the region. The company manages global investment portfolios for private and institutional investors. It will hold an indirect minority stake in SCMSA.
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Commenting on the deal, the CEO of Sasfin, Michael Sassoon, said: “Sasfin has been working with Saxo Bank for many years. This deal further strengthens our association. Saxo Bank makes investing and trading globally accessible to the everyday investor through simple, cost-effective and user-friendly tools. These tools are being used by some of the most substantial institutions in South Africa to solve for their client needs.”
Saxo Bank Diversification Strategy Continues
The CEO of Saxo Bank Kim Fournais explained that the sale is part of the strategic shift of the company to focus on certain key markets and maintain a presence in other markets via strong partnerships.
“We have worked with Sasfin for many years and we are confident that clients will continue to experience the same well-known service and expertise. Through the relationship, clients will continue to benefit from our innovation and have access to the same broad product range and platforms as they are used. By leveraging our technology and Sasfin’s strong local presence we create a true win-win,” Fournais explained.
The deal is subject to certain conditions being fulfilled.