Denmark-based Saxo Bank announced on Monday a conditional agreement has been reached on a recommended public offer to be made by the bank for the entire issued and outstanding share capital of BinckBank for €6.35 in cash per share (cum dividend). According to Saxo Bank, this announcement follows constructive interactions between the boards and management teams of both companies including a period of targeted due diligence. It was revealed:
“For more than 25 years, Saxo Bank has strived to democratize trading and investment. The combination of BinckBank and Saxo Bank will help accelerate this ambition, achieve necessary scale and facilitate the strategic response of both companies to current market dynamics. The interests of all stakeholders of Saxo Bank and BinckBank have been carefully taken into account. The merger benefits from the two parties’ complementarity in geographic footprint, product offerings, and customer bases, covering the full retail client spectrum from mass retail to high-end. The combined entity is committed to continued significant investments in technology, thereby allowing it to remain at the forefront of innovation while adapting to changing customer behaviour.”
While sharing more details about the offering, Kim Fournais, CEO and founder of Saxo Bank, stated:
“Combining BinckBank with Saxo Bank is a true win-win for all parties. Clients will get better products, prices, platforms and services, employees will benefit from enhanced career opportunities and, importantly, we will gain the necessary scale to further step up investments in technology and in our people. As the investment and trading industry matures and faces new regulation, as well as rising expectations for digital client experience, scale, technology and multi-asset capabilities, become increasingly key to long-term success.”
John van der Steen, chairman of the BinckBank supervisory board went on to add:
“Talks with Saxo Bank have given us much trust in the combined future. BinckBank and Saxo Bank are quite similar companies with shared passions, ambitions and values. A combined future will strengthen our position in the European market and increases our added value to our customers. The Boards believe this transaction puts BinckBank in a stronger position going forward. The proposed transaction is the result of extensive negotiations between BinckBank and Saxo Bank over a period of several months and a shared vision for the combination going forward. The combination of a very attractive cash price, deal certainty, and strong protection of stakeholder interests through the non-financial covenants leads the boards to unanimously recommend this transaction.”
The offer comes less than a month after Saxo Bank announced the launch of its new platform for investors. SaxoInvestor is described as a platform that gives the growing investor segment the opportunity to build long-term portfolios across stocks, bonds, mutual funds, ETFs, and SaxoSelect portfolios.