Saxo Bank being sold? For $3 billion?

Danish newspaper Borsen reports on a possible deal for a 33% stake in Saxo Bank.
 
 
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* Saxo Bank
* Forex
* fx
* Forex M&A

Industrys:
* Forex
* Fx

Location:
* New York City - New York - US

April 21, 2011 - PRLog -- An interesting news item surfaced on Bloomberg yesterday, quoting an article in Danish newspaper Borsen, that unnamed US private equity firms were close to buying a 33% stake in Saxo Bank for 5 billion DKK (approximately $975 million) – valuing Saxo Bank at nearly $3 billion!

Specifically, the Borsen article reports that Saxo Bank shareholder General Atlantic (22%) has hired investments banks JP Morgan and SEB Enskilda to sell its stake, alongside (possibly) the 9.9% interest in Saxo Bank held by Portugal’s Espirito Santo Financial Group. (Most of the remaining 67% of Saxo Bank is held by its co-founders Kim Fournais and Lars Seier, and other employees). And, reports Borsen, a deal is close.

While we would not be at all surprised by a transaction whereby new private equity investors buy out the existing outside investors in Saxo Bank – such “flipping” transactions happen all the time, across many different industries – we would be surprised by these suggested terms and valuations. By comparison, FXCM – which did more volume and earned more net profit than Saxo Bank in the second half of 2010 – is currently trading at a market cap of about $825 million, or less than a third of the rumored price for Saxo Bank. And as we point out in our Online Forex Industry Report, M&A valuations in the sector tend to be well below publicly traded multiples.

For more details and links to the original articles see LeapRate’s Forex Industry News page at http://www.leaprate.com/News.html.

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Tags:Saxo Bank, Forex, fx, Forex M&A
Industry:Forex, Fx
Location:New York City - New York - United States
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