The Board of Bankinter, S.A. (BME:BKT) announced the spin-off of 82.6% stake in Linea Directa Aseguradora, S.A. for €1.2 billion on December 18, 2019. The number of shares representing Línea Directa's share capital is expected to be adjusted so that each Bankinter shareholder will receive one share of Linea Directa for each Bankinter's share. Once the deal is final, Bankinter's shareholders will also become shareholders of Línea Directa, which will become an independent, publicly-traded insurer.

Before the transaction, Línea Directa will pay Bankinter a €60 million dividend. As on March 24, 2021, The Extraordinary dividend from LDA to Bankinter is €120 million. Accordingly, Bankinter would maintain a minority shareholding of 17.4% of Linea Directa.

Once approved at the annual general meeting of shareholders of Bankinter (scheduled for March 2020), the transaction will be submitted for required regulatory authorization, after which delivered shares will be distributed and admitted to trading (foreseeably in the second half of 2020). Annual general meeting of shareholders approved the transaction as on March 19, 2020. As of April 23, 2020, transaction could be delayed until first quarter of 2021.

As per announcement made on January 20, 2021, According to Bankinter's Chief Executive Officer Maria Dolores Dancausa expects to receive an ECB approval during 2021, hopefully before shareholders meeting. As on March 22, 2021, ECB approved this transaction. As of September 1, 2020, the transaction is expected to be closed before the first quarter of 2021.

Linea Directa expected to list in end of April 2021. As of April 16, 2021, Transaction is expected to complete on April 29, 2021. The deal will have a limited impact on Bankinter's profitability and increase its consolidated CET1 capital ratio by 5 basis points.

According to Bankinter's Chief Executive Officer Maria Dolores Dancausa, Bankinter expects to offset in two or three years negative impact on profits from spin-off of Linea Directa Aseguradora, which accounts for around a fifth of both its profit and revenues. Citigroup Inc. (NYSE:C) acted as financial advisor for Bankinter, S.A. BofA Securities, Inc. acted as lead financial advisor to Bankinter, S.A. and Linea Directa Aseguradora, S.A.