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Saxo Bank gets cash injection from stake sale

Christian Wenande
April 16th, 2015


This article is more than 9 years old.

CarVal Investors obtain 2.5 percent for 579 million kroner

Saxo Bank looking to rebound from Swiss debacle (photo: Saxo Bank)

The Danish trade and investment bank Saxo Bank has sold a 2.5 percent stake in the company to the US-based international investment company CarVal Investors for 579 million kroner.

Saxo Bank CEO Lars Seier Christensen said that the move enables Saxo Bank to meet potential future capital requirements and consolidate its market position.

“In the process of exploring opportunities in the market, we found a combination that allows us to both issue additional capital and raise equity capital that will benefit the bank, the shareholders, investors and clients,” Christensen said.

“The investment is testament to the trust in the bank’s ability to capitalise on significant growth opportunities. We welcome CarVal Investors as new shareholders and note owners.”

READ MORE: Saxo Bank customers lose big on Swiss franc uncertainty

Swiss monkey wrench
Saxo Bank has been flying in recent years. In 2014, it more than doubled its financial results from 162 million kroner in 2013 to 381 million kroner.

But that positive outlook was scuppered when Switzerland removed the ceiling on the franc against the euro in January, leading to some customers enduring huge losses.

Saxo Bank estimated that the Swiss fiasco could potentially cost upwards of 700 million kroner.


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Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

Pill pushers
At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”