Copenhagen-based multi-asset broker, SAXO Bank on Tuesday confirmed about placing a bid for BinckBank. The bid amount of €424 million by SAXO Bank will be voted by the shareholders of the Dutch company on April 23rd.
Saxo Bank’s €424 million offer to BinckBank is 42 per cent, 43 per cent and 38 per cent over the average volume weighted price over the last one, two and three months prior to the announcement. If all things go well, the deal is expected to get completed in the first half of Q3, 2019, with shareholders vote only a technical requirement.
BinckBank is a discount brokerage and is listed on Euronext, and through this takeover, both companies will help to realize important economies of scale. The deal will be financed partly through Saxo Bank’s available cash resource and €100 million through an equity financing.
With increased competition in the EU region and stiff regulatory competition, the deal between Saxo Bank and BinckBank is the next logical step to operate competitively in the region. With changing business dynamics, there is considerable change in client behaviour, and firms are required to take proactive and decisive strategic actions.
CEO of Saxo Bank Kim Fournais said:
“Our conversations and initial preparations over the past months have reaffirmed the strong cultural fit between BinckBank and Saxo Bank based on a shared vision and purpose to democratise investment and empower everyone to take control of their financial destiny.”
Vincent Germyns, Chairman of BinkBank said:
“On a term of two to three years, this will, of course, have consequences for staff. As far as possible these consequences will be met through natural staff turnover. In the case of redundancies, a good severance scheme will apply. The executive board, supervisory board and works council support this severance scheme unanimously.”
Post completion of the deal, Saxo Bank will appoint Mr S. Kyhl, Mr S. Blaafalk and Mr F. Reisbol, to the supervisory board of BinckBank. And at the same time, Mr J.W.T. van der Steen and Mr J.G. Princen will continue as independent directors. And, Van der Steen will become the Chairman of the Supervisory Board.
The BinkBank Executive Board will be composed of three members: Mr V.J.J. Germyns, Mr E.J.M. Kooistra and Mr S.J. Clausing post the deal.
