Saxo Bank gets cash injection from stake sale
The Danish trade and investment bank Saxo Bank has sold a 2.5 percent stake in the company to the US-based international investment company CarVal Investors for 579 million kroner.
Saxo Bank CEO Lars Seier Christensen said that the move enables Saxo Bank to meet potential future capital requirements and consolidate its market position.
“In the process of exploring opportunities in the market, we found a combination that allows us to both issue additional capital and raise equity capital that will benefit the bank, the shareholders, investors and clients,” Christensen said.
“The investment is testament to the trust in the bank’s ability to capitalise on significant growth opportunities. We welcome CarVal Investors as new shareholders and note owners.”
Swiss monkey wrench
Saxo Bank has been flying in recent years. In 2014, it more than doubled its financial results from 162 million kroner in 2013 to 381 million kroner.
But that positive outlook was scuppered when Switzerland removed the ceiling on the franc against the euro in January, leading to some customers enduring huge losses.
Saxo Bank estimated that the Swiss fiasco could potentially cost upwards of 700 million kroner.