Bankinter is planning to spin off a majority stake of its insurance business next year, according to a Reuters report.
The Madrid-based bank, the fifth largest in Spain by market value, announced this week that it will divest an 82.6% stake in insurer Linea Directa Aseguradora (LDA) by distributing the shares to its own stockholders, while keeping a 17.4% minority on its books.
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According to Reuters, the value of the stake is around €1.184 billion, while the total value of the insurance firm is around €1.434 billion.
“The ‘benefit’ is that the transaction shines a light on the value of LDA but it remains to be seen whether the market agrees with the ‘expert’ valuation, while a rush to ‘crystalise’ such value could create an overhang on the newly-listed LDA,” analysts at broker Jefferies told Reuters.
If the divesture pushes through, the move could end the drought in flotations on Spanish markets caused by uncertainty from the country’s two inconclusive elections.
