Saxo Bank has sold its stake in regulatory technology (RegTech) platform Saxo Fintech to its largest shareholder China Geely Holding Group in a move to "strengthen its focus on its core business and markets." The Danish investment bank and online trading provider announced the sale on Thursday, noting a change in its ownership structure.

Saxo Fintech, formally known as Saxo Geely Tech Holding A/S, is a financial technology company previously jointly owned by Saxo Bank and Geely. Launched in 2019, it aims to provide financial and regulatory technology solutions to financial institutions such as banks, brokerages and fintech companies in mainland China.

Previously, Saxo Fintech's ownership was split equally between the two companies. However, the deal is subject to regulatory approval and once the sale is approved, the joint venture will be fully controlled by Geely Holding Group.

Saxo Bank said it had decided to sell its stake in the regulated technology company "after careful evaluation and strategic review". As a result, Geely will acquire all the shares of Saxo Fintech previously held by Danske Bank.

"As part of this transaction, Saxo Bank will receive its own shares in return, equivalent to approximately 2 percent of Saxo Bank's outstanding shares," the fully regulated and licensed Danish bank said in a statement.

The move will further impact the current ownership structure of Saxo Bank, which offers online trading and investment services to retail and institutional clients. While Geely remains the majority shareholder in the Danish multi-asset broker, the group will reduce its stake from 52 per cent to 49.88 per cent.

In addition, Saxo Bank Chief Executive Kim Fournais will hold 28.90 percent of Saxo Bank, Finnish insurer Sampo will retain 19.83 percent, and minority shareholders will own 2.20 percent of the company.