Wednesday, August 17

Mutua Madrileña stands as the fifth shareholder of El Corte Inglés

Mutua Madrileña purchase for 555 million euros 8 percent of the group’s share capital The English Court (hike) and for another 550 million euros it takes control of the ECI insurer by acquiring a 50.01 percent stake in this company.

The entrance of the Mutua Group in the shareholders it supposes the access of its president and CEO, Ignacio Garralda, on the board of directors of El Corte Inglés by becoming the fifth shareholder of the group.

After the purchase of Mutua, the shareholding is divided between the Ramón Areces Foundation, with 37.35 percent of the capital stock; out, the patrimonial of Martha and Cristina Alvarez with 17.18 percent; the sheikh’s qatari investment fund Al Thani, Primefin, with 10.3 percent; Ceslar Corporation, 9 percent; Mutua Madileña, 8 percent; Mancorm wallet, 7.5 percent, and the rest are small shareholders.

Mutuactivos will sell its funds through ECI

The agreement assumes that Mutua Madrileña will be in charge of managing the two business lines of ECI’s insurer: the life and accident insurance branch and the insurance brokerage. Also, thanks to the agreement, offer and distribute Mutuactivos investment funds, the Mutua management company, to ECI clients.

The association will maintain the Seguros El Corte Inglés brand and “innovative and advanced products supported by extensive analytical and data management experience” will be created, both companies say in a statement.

Mutua thus joins a group that has more than 2,000 points of sale with a presence in most of Spain, Portugal and other international locations.

About a dozen entities and consultants involved in the operation

The advisers of the operation were Societe Generale and Garrigues, by Mutua, and Goldman Sachs, Uría and KPMG, the latter as co-adviser for insurance, on the part of El Corte Inglés. In addition, there has been the additional intervention of Bank of America and Deloitte.

El Corte Inglés centers receive more than 700 million face-to-face visits a year and some 500 million visits through its online channels, “Which makes it one of the largest online sellers in Spain”, as stated in the statement.

ECI indicates that the operation involves “a decisive step in the execution of the Strategic Plan of El Corte Inglés that in recent months has carried out important operations both commercially and corporately ”. For its part, Grupo Mutua “Extends its distribution channels” and a “larger customer base”.