Monbat AD officially announced yesterday its intention to split its recycling facilities into a new company, which will be listed on the Bulgarian stock exchange. Monbat will remain the main shareholder for the foreseeable future.Our view: We are not convinced that such a separation is necessary or beneficial. Recycling is not an unrelated activity to Monbat’s core business. Recycling provides the necessary raw materials for the production of starter batteries and thus is an integral part of the firm’s supply chain. Separating the two activities may create a conflict of interest between shareholders of the two companies.