COPENHAGEN: Denmark's Saxo Bank has agreed to buy all shares in Dutch online bank BinckBank for around $480 million in an all-cash public offer.
Saxo Bank will pay 6.35 euros per share, representing a premium of 35 percent to BinckBank's closing price on Friday, valuing the deal at 424 million euros ($480 million), the two firms said in a joint statement on Monday.
"As the investment and trading industry matures and faces new regulation as well as rising expectations for digital client experience, scale, technology and multi-asset capabilities become increasingly key to long-term success," Saxo CEO Kim Fournais said in the statement.
The transaction, which was unanimously recommended by BinckBank's board, will be funded via a combination of equity injections by Saxo Bank's shareholders and cash, it said.
"Negotiations between the two banks have been taking place for the past couple of months and came after BinckBank signalled interest in reviewing strategic options," a source with knowledge of the matter said
Lazard acted as the sole adviser to BinckBank while JPMorgan worked with Saxo Bank.
Saxo Bank, which develops and operates online trading platforms, is majority-owned by Chinese carmaker Zhejiang Geely Holding Group.
The two firms announced late on Friday they were in advanced discussions regarding a potential combination of the businesses.
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