Bankinter SA plans to off-load a majority stake in wholly owned insurance company Línea Directa Aseguradora SA Compañía de Seguros y Reaseguros and then list it on the stock market.

The Spanish lender said Dec. 18 that it will divest an 82.6% stake in the unit by distributing the shares to its own stockholders, valuing the stake at €1.18 billion and the business as a whole at €1.43 billion.

Bankinter will retail a minority 17.4% shareholding in the company, and LDA will have to pay Bankinter a €60 million dividend before completion of the deal, which is expected to have limited impact on group profitability.

LDA is expected to begin trading in the second half of 2020.