In twin news releases today, Saxo Bank has announced its first half results for 2015 (more on itd reported $73.1 million loss) and details of new minority owners, Indonesian Sinar Mas Group. The addition of Sinar Mas Group confirms previous media reports of a sale of a portion of Saxo Bank taking place. In total, Sinar Mas has acquired a 9.9% stake in the broker for about $144 million (DKK951 million), which values the firm at around $1.45 billion (DKK9.6 billion).
According to Saxo Bank, sellers were Saxo Bank Co-Founders Kim Fournais and Lars Seier Christensen who together sold 7% of their holding to Sinar Mas. The other 2.9% was composed of minority shareholders who exercised their ‘Tag-Along’ rights to join in the sale. Following the sale, Fournais and Christensen will remain majority owners of Saxo Bank, holding a combined 52% stake in the company.
Along with the founders, private equity firm TPG owns a 30% stake in Saxo Bank which was acquired in 2011. Based on a valuation of Saxo Bank of $1.87 billion at the time of TPG’s purchase, that investment is currently underwater based on today’s revelation of a $1.45 billion value. However, the current valuation does represent an increase from April, when Saxo Bank had sold 2.5% of the firm to CarVal Investors to raise new capital. At the time, the deal with CarVal Investors valued the broker at $1.33 billion.
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An Indonesian conglomerate with investments in a wide variety of industries including financial services, real estate, pulp and paper and telecom, Sinar Mas Group is expected to act as a strategic partner, and assist Saxo Bank in growing their business in the Asian markets.
Commenting on the investment, Danny Oei of Sinar Mas Group stated, “Saxo Bank is an attractive investment for Sinar Mas Group because of its disruptive trading technology and vast experience in the financial markets. Saxo Bank is already an established name in most markets, and Sinar Mas Group can help spur growth in the Asian markets with its presence, network and competencies.”
In a joint statement, Kim Fournais and Lars Seier Christensen, added, “This is a strategic sale of shares following an offer received from a partner who will really help open further doors to the Asian markets, where Saxo Bank is already experiencing solid growth. We look forward to a close and successful collaboration with Sinar Mas Group supporting investors and traders in Asia with unparalleled access to global financial markets.”