Saxo Bank has sold its stake in the regulatory technology (RegTech) platform, Saxo Fintech, to its largest shareholder, China-based Geely Holding Group, in a major move targeted at “strengthening its focus on core business and market.” The Danish investment bank and online trading provider announced the sale today (Thursday), noting a change in its ownership structure.

Geely Group Buys Out Saxo Fintech

Saxo Fintech, formally called Saxo Geely Tech Holding A/S, is a fintech firm that was previously and jointly owned by Saxo Bank and Geely. It was launched in 2019 to provide financial and RegTech solutions to financial institutions, such as banks, brokers and fintech firms in Mainland China.

Earlier, the ownership of Saxo Fintech was evenly split among both companies. However, once the sale, which is still subject to regulatory approval, is ratified, the venture will be completely controlled by Geely Holding Group.

Saxo Bank said it made the decision to sell its stake in the RegTech firm “after a process of diligent evaluation and strategic assessment.” As a result, Geely will purchase all shares the Danish bank previously held in Saxo Fintech.

“As part of this transaction, Saxo Bank will receive its own shares in return, equivalent to approximately 2% of the outstanding Saxo Bank shares,” the fully regulated and licensed Danish bank said in a statement.

The move will further affect the current ownership structure of Saxo Bank, which provides online trading and investment services to retail and institutional clients. While Geely remains the Danish multi-asset broker’s majority owner, the group will reduce its stake from 52% to 49.88%.

Furthermore, 28.90% of Saxo Bank will be owned by the CEO, Kim Fournais, while a Finnish insurance company, Sampo retain 19.83% and the minority shareholders have 2.20% ownership in the company.

Saxo Bank Mark Milestones

The divestment move comes at a time Saxo Bank’s client assets quintupled in five years, topping $100 billion. Recently, the online trading platform provider hit a record of one million clients on its platform.

However, the firm said the “strategic decision” to divest fits into its “ongoing commitment to optimise its business operations and focus on core markets and clients.”

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