In a strategic move, Danish investment bank Saxo Bank A/S ("Saxo"), a
global leader in on-line trading, has entered a Memorandum of Understanding
with Tricom Holdings Limited ("Tricom"), Babcock & Brown and ANZ Group with a
view to acquiring a 35 percent holding in the Sydney based broking house.
SYDNEY, May 5 /PRNewswire/ -- The proposed transaction would, when
completed, reflect an important step for Saxo's long-term plan to strengthen
its position in the Australian and New Zealand markets, as well as further
enhancing its business throughout the Asia Pacific region.
It is intended the acquisition would include an option for Saxo to
increase its holding to 100 percent within three years. The transaction is
subject to completion of final due diligence and regulatory clearance. The
new entity would enable the two organisations to build on their existing
strong relationship and mutual capabilities. The business would be rebranded
as Saxo Capital Markets Australia.
Under the proposal, the business would have the added benefit of the
experience of Saxo's senior executive management team, global resources and
corporate governance framework. Tricom's CEO, Lance Rosenberg, and staff
would continue in their present roles.
This combination would enable Saxo to accelerate the development of a
highly competent and profitable business. The new entity would work closely
with Saxo's existing Asia Pacific operation headquartered in Singapore.
"Partnering with one of the world's leading on-line securities and
currency trading house would be exciting news for our business, customers and
staff," said Mr Rosenberg.
"With Saxo Bank as a partner, we will be better capitalised and a more
diversified business backed by Saxo Bank's global expertise, strength and
recognition."
Tricom is already a partner of Saxo Bank, having over 2,000 Tricom
clients benefiting from Saxo's award winning proprietary investment trading
system, SaxoTrader.
Saxo Bank's joint CEOs Kim Fournais and Lars Seier Christensen emphasised
that the proposed transaction would build on the strong relationship the bank
has had with Tricom for over five years.
"We look forward to working with Lance and all the employees to capture
the strategic and operational synergies that would come from bringing the
businesses together.
"The Australian and New Zealand markets are very important for us and we
see great growth potential. Joining forces would provide us with an instant
presence in terms of clients and partners together with an excellent team of
dedicated staff," they said.
The Saxo joint CEOs also pointed out that Tricom's current expansion into
New Zealand, Hong Kong, China and other overseas markets would mesh perfectly
with Saxo's strategy.
"The combination of their talent and knowledge with Saxo Bank's business
model and worldwide network would become a very powerful offering to the
benefit of clients, partners and existing staff.
"Saxo Bank is active in the Australian and New Zealand markets through
its unique White Label Partnership arrangements with Tricom as well as
several other financial institutions. One of the benefits of the proposed
acquisition is that by being much closer to its clients and partners, Saxo
Bank would be better positioned to service their needs and identify new
opportunities," they said.
The proposed transaction follows Saxo Bank's acquisition in September
2007 of Geneva based Synthesis Bank - an online investment bank. In November
2007, Citi chose Saxo Bank as its global partner for its online FX offering
based on the SaxoTrader platform.
The transaction is expected to be completed in early June 2008 and will
be funded from Saxo Bank's existing cash reserves and facilities. It is
expected that post-transaction both Babcock & Brown and ANZ Group would
continue to have an equity interest in the business.
About Saxo Bank A/S
Saxo Bank A/S is a global investment bank specialising in online
investments in international Capital Markets. Saxo Bank enables clients to
trade currencies, shares, CFDs, futures, options and other derivatives, as
well as providing portfolio management via our online trading platform,
SaxoTrader. SaxoTrader has been developed by Saxo Bank and is available to
today's investor directly through Saxo Bank or through one of our global
partnerships, where it forms an integral part of their infrastructure. One of
Saxo Bank's significant areas of business is White Labelling. This involves
the bank's online trading platform being customised and branded for other
financial institutions and brokers. Saxo Bank has more than 100 White Label
Partners and boasts thousands of clients in over 177 countries. The bank's
website http://www.saxobank.com receives approximately 65,000 visitors every
day. Saxo Bank currently employs more than 1,300 employees from 62 different
countries. Saxo Bank is headquartered in Copenhagen with offices in London,
Geneva, Zürich, Singapore and Marbella. It also runs a representative office
in Beijing and an IT development centre in St. Petersburg.
http://www.saxobank.com
http://www.saxobank.ch
http://www.saxobank.dk
http://www.saxobank.co.uk
http://www.saxomarkets.com.sg
http://www.saxotrader.es
http://www.saxosoft.com
About Tricom Equities Limited
Tricom is an Australian owned global Investment, Advisory and Trading
House that brings together the knowledge and skills of its people to create
value for its corporate, institutional and investment clients. The Tricom
group offers its clients Broking Solutions; Capital Markets and Corporate
Advisory; and Wealth Management. Tricom aims to enhance value by providing
clients with a portfolio of Tricom solutions rather than focusing on
individual products. This focus is underpinned by Tricom's corporate culture,
which is a product of the company's background as a privately owned entity
and is reinforced by Tricom employees' notable equity ownership of the firm.
Formed in Sydney in 1994 as a specialist futures broking firm, the Tricom
group expanded rapidly across Australia first, and then spread
internationally into New Zealand, Switzerland, Hong Kong and China. Tricom
now employs over 230 people in 13 offices across the globe.
http://www.tricom.com.au
SOURCE Saxo Bank A/S
Media inquiries: Kasper Elbjorn, Saxo Bank Corporate Communications, Tel:
+45-30-65-43-00
