Saxo Bank Terminated Merge Deal With Spac Partner

Saxo Bank Terminated Merge Deal With Spac Partner

Saxo Bank, a Danish investment bank on Wednesday announced the termination of the merger deal with Disruptive Capital Acquisition Company (DCAC). The partnership deal was a proposal raised to make the broker extensively known to the public.

Mid-September, just a few months before the break of the SAXO-DCAC deal, Saxo raised a deal with SPAC of a potential merger that is yet to be fulfilled. The breakthrough of this merger will help the listing of the entity on Euronext Amsterdam.

“It has after careful consideration been determined that the timing is not optimal,” the official press release on the termination of the announcement stated.

With its offices in Denmark, Saxo has greatly served as a forex trading entity, conveying services to retail and professional traders. However, the partnership termination will kill Saxo’s client base diversification.

The broker will also miss the chance to have the company profile outstretched, and its growth strategies met.

Saxo capitalization is stable and there would be no primary issue of shares with the listing. However, a few Board Members and some of the senior administrators in Saxo, including the CEO Fournais, intended to raise their stake, whereas Geely Financials Denmark A/S and Sampo Plc, two of the Saxo shareholders were considering liquidating their holdings.

The Gains And The Misses

The merger failure between DCAC, a SPAC partner, and Saxo has caused a huge loss in the advantages DCAC would have enjoyed. This includes receiving Saxo shares with the subsequent delisting and liquidation of SPAC.

DCAC listed itself on Euronext Amsterdam last October, raising £125 million.

“DCAC is contemplating its options, taking into account its business combination deadline of 11 January 2023, subject to potential extension,” the press release added.

Saxo has followed several financial companies that have terminated their public listing plans. Among the members in the list include, eToro. This is a renowned broker providing retail trading to investors, who terminated its ambitions of going public on a United States stock exchange.

The broker sealed a deal with Betsy Cohen’s blank-check company, but the signing collapsed before the deadline was met.