China’s Zhejiang Geely Holding Group will increase its stake in Denmark’s Saxo Bank to more than 50 percent by investing an additional US$300 million, Reuters reports.
Geely said in May that it will take a 30 percent stake in Saxo bank as part of a diversification drive.
The deal, which is still awaiting regulatory approval, marked the first major investment into financial services for the Chinese automaker that owns Sweden’s Volvo Cars.
Now Geely aims to lift its stake to 51.5 percent, taking the total value of its investment to more than US$800 million, according to the report.
Despite its name, Saxo Bank derives most of its income from its online trading platforms for private foreign exchange traders and others rather than traditional banking.
“Saxo Bank is an attractive investment for Geely because the bank, as a FinTech (financial technology) and RegTech (regulatory technology) company, has always had its main focus on technology,” a Geely spokesman said in an email to Reuters.
Geely believes that Saxo Bank’s technologies and product value could be expanded across Asia, the spokesman said.
Finland’s Sampo, meanwhile, said on Monday that it will buy a 19.9 percent stake in Saxo Bank for 265 million euros.
A spokesman for Saxo Bank told Reuters that Geely will buy its shares under the same terms as Sampo.
Current Saxo Bank shareholders TPG Capital and SinarMas have accepted the offers from Geely and Sampo and will sell their stakes of 29.26 percent and 9.9 percent respectively, Saxo said.
Saxo Bank has 1,600 employees in 18 countries. It had operating revenue of around US$457 million last year, according to the report.
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