FRANKFURT, Oct 19 (Reuters) – FlatexDEGIRO (FTKn.DE), the German online broker with operations throughout Europe, is open to a takeover by a U.S. or Asian company, a move that could “make a lot of sense”, its chief executive told Reuters.
The broker, with 2.5 million customer accounts in 16 countries, is shifting focus to “growth and opportunities” after making progress on regulatory issues, said the CEO, Frank Niehage.
“If a strategic partner comes and makes an offer to take us over and be part of a bigger business, then that would make a lot of sense,” Niehage said, describing the potential creation of “a really global player”.
Asked if this was an invitation for an approach, Niehage said, “Kind of. Yeah.”
The German financial regulator BaFin earlier this year said that it had ordered flatexDEGIRO to “remedy serious shortcomings” in its internal controls and other areas. It fined the broker, sent in a special monitor and imposed stricter capital requirements.
Last month, flatexDEGIRO said BaFin had observed “successful progress”, a judgement that freed up capital.
Niehage said flatexDEGIRO this month would talk to the regulator about proposals to buy back shares or issue a special dividend.
BaFin declined to comment.
Reporting by Tom Sims; editing by Matthias Williams
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