In a deal that gives the Portuguese group the option to expand its share to 10% within five months, it could become the third biggest shareholder of the privately-held Saxo Bank along with the two founders and joint CEOs, Kim Fournais and Lars Christensen, and General Atlantic, the American private equity fund.
Following the completion of the transaction, Saxo Bank will be ranked as the fourth largest Danish bank by market capitalization.
Valuing Saxo Bank’s market valuation at E1.26 billion, the transaction is being welcomed by both banks as a strategic move that will not only strengthen their well established partnership, but will create new opportunities for growth and expansion.
With a 10% ownership held by both entities, Banco Espirito Santo Group (BES Group) and Espirito Santo Financial Group will be jointly entitled to designate a member of Saxo Bank’s board of directors.
Ricardo Salgado, president of BES Group, said: With Saxo Bank’s well established record as a leading and innovative player in the global online investment industry, we see huge potential in the international market place by combining our forces through this investment.
Our equity investment in Saxo Bank is an endorsement of the value and intrinsic strength of our partnership. Having worked so closely with Saxo Bank as we have, we could not have wished for a better partner or a more promising investment in this area.
