Multi-asset investment major Saxo Bank today announced it had gained a new shareholder – Indonesia’s industrial conglomerate Sinar Mas Group.
Just several months after Saxo brought on board US-based CarVal Investors which purchased a 2.5% stake in Saxo Bank in April of this year, Sinar Mas Group has acquired a 9.9% stake in Saxo Bank for a total of DKK 951 million ($143.8 million), thus valuing Saxo Bank at DKK 9.6 billion, or about USD $1.4 billion.
The valuation of the Sinar Mas investment was done at just slightly above that of the CarVal deal, although the two transaction were structured very differently. CarVal’s investment was done as a combined equity rights and convertible notes issue.
Sinar Mas acquired a stake of 7% from the co-founders of Saxo Bank, Kim Fournais and Lars Seier Christensen, whereas the other 2.9% came from minority shareholders in Saxo Bank who exercised their Tag-Along Right.
Following the transaction, Lars Seier Christensen and Kim Fournais continue to own more than half of the Bank’s equity equivalent to 52% and continue, in cooperation with the global private equity firm TPG Capital, to be the controlling shareholders of the Bank.
The announcement comes on the day Saxo Bank revealed a large loss of DKK 484.6 million ($73.3 million) for the first half of 2015, although the entire loss was attributable to the one-day January 15 ‘Black Thursday’ spike in the value of the Swiss Franc.
Sinar Mas Group is seen as a strong partner in the Asian markets that can strengthen the Bank’s already solid growth in Asia.
In a joint statement, Kim Fournais and Lars Seier Christensen, said:
“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.
“Since we founded the company 23 years ago, we have invested heavily in technology, enabled opportunities for private and professional investors and traders and with the recent launch of SaxoTraderGO we have delivered to our clients the trading platform of the future.”
Danny Oei of Sinar Mas Group, said:
“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.”
To view the official announcement, click here.