Report
Alexander Korda
EUR 88.49 For Business Accounts Only

New Spin: Successful Spanish Direct Banking Segment Gains Independence

Bankinter SA (BKT SM), one of the major banks in Spain in operation since 1955, has announced the separation of its successful direct banking segment, Linea Directa Aseguradora. Originally founded as a joint venture with Direct Line Insurance Group Plc (DLG LN) in 1995, it was the first bank in Spain to offer online services and became a wholly-owned subsidiary of BKT in 2009. The business has demonstrated its viability in generating value, so now will become independent to further drive growth.

Direct Insurance Lines (Spin) is a Strong Revenue Driver for BKT SM / 19% of Income Before Tax in 2019
Founded as 50/50 Joint Venure in 1995, BKT Bought Out Full Stake in 2009
CEO at 2020 AGM: "If the Insurer Continued to be Successful, It Should One Day be Listed"
Management Refused to Sell Segment / Retaining 17.4% Stake to Continue to See Benefits of Growth
Expected Completion 2H 2020 / BKT SM Enters the Upcoming EUR Spinoff Calendar
Underlying
Bankinter SA

Bankinter is the parent company of a group engaged in banking activities. Services provided include: investment banking; capital market services; financial services insurance; international services such as foreign exchange transactions and travelers' checks; wholesale corporate banking; and retail and private banking services. Co. offers its products and services through the following channels of distribution: branch network; telephone banking, interactive (software) banking; agents; and Internet banking. As of Dec 31 2014, Co. had assets totalling Euro57,332,974,000 and deposits totalling Euro29,966,129,000.

Provider
The Edge Group LLC
The Edge Group LLC

The Edge Group - Global Fundamental Catalyst Investing. The Edge provides investors with access to hidden corporate value from Global Special Situations using a pioneering approach to investments. Founded in 2005 by fund management and investment banking professionals to provide high quality, private equity-level research on Global Corporate Divestitures for the benefit of fundamental event-driven, growth and value-oriented investors in this difficult to track, but proven investment space.

The Edge will look to screen and analyze include Spinoffs; Reverse Morris Trusts; Squeeze Outs; Privatizations; Demutualization; Deep Discounted; Rights Issues; Rights Offering; Restructuring; Insider Purchases / Buying Change of Management / CEO Change; Deteriorating fundamentals; Post-Bankruptcy; Reorganization; Tender Offer; M&A Deals; Secondary Offering; Share Swap; Thrift Conversions; Share Buybacks; Activist; Mergers. All analyzed from a fundamental point of view.

 

 

Analysts
Alexander Korda

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