Denmark based banking and financial service provider Saxo Bank recently made an announcement which stated that it has obtained a green signal from Dutch and Pan-European financial regulatory authorities for its plan to acquire Netherlands headquartered online trading service provider BinckBank.
As per the announcement made by Saxo Bank, the investment banking giant is set to acquire the Dutch online trading service provider in a deal worth 424 Million Euros (US$ 472 Million). Both parties involved in the deal made a joint statement which stated that they have managed to acquire all-clear from respective regulatory bodies involved and are all set to close this acquisition. The Dutch trading service provider has also requested all its shareholders to tender their shares into this acquisition deal offered by Saxo Bank. Some of the notable points in the approval received from regulatory bodies and central banking authorities ECB & DNB include – permission to appoint new members to the supervisory board and related changes in co-policymakers at BinckBank.
The acquisition of BinckBank was officially announced by Saxo Bank in April 2019 but the process for same began back in 2018 when the firm submitted a bid for takeover of Euronext listed firm with premium calculated on average volume-weighted price over last one, two and three calendar months prior to announcement stating shareholders of the bank will get premium ranging from 38% to 42% and is expected to be fully completed by Q3 2019. In simpler terms, the sale is agreed at 6.35 Euro per share as per the agreement between two parties. This acquisition is aimed at increasing the scale of operations and market share of Saxo Bank in the European market. At the moment, Saxo bank has announced an initial notification period during which the shareholders of the firm can submit their shares to the acquisition deal by July 31, 2019.
While the deal has been termed unconditional, for the takeover to progress smoothly, the deal is subjected to a minimum acceptance threshold which states that Dutch broker should ensure at least 80% of its shares are tendered to Saxo bank in the deal.
Saxo Bank has the formal right to lower the minimum threshold requirement to as low as 67% of total shares, in case the Dutch broker fails to deliver the minimum requirement of shares for the deal by the end of the extension period, but Saxo Bank has expressed no interest in doing so.
Despite the acquisition, the broker will remain as a separate entity and expects to use this deal to expand its online trading and investment operations in all regions where competition is rising higher. BinckBank offers its clients with discretionary asset management services and access to all major financial markets across global market via its dedicated offices in some of the key European marker regions such as France, Belgium, and Italy.
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