Future Enterprises sells 25% stake in Future Generali India Insurance Company


For consideration of Rs 1252.96 cr

On January 26, 2022, Future Enterprises agreed to sell a 25% stake in its general insurance joint venture, Future Generali India Insurance Company (FGIICL) to its joint venture partner, Generali Participations Netherlands NV (“Generali”) for consideration in cash of Rs 1252.96 crore, plus additional consideration related to the closing date of the transaction.

Generali has also acquired an option to buy out the Company’s remaining stake in FGIICL, either directly or through an agent, at an agreed valuation subject to applicable regulatory approvals.

The transaction is subject to applicable regulatory approvals and other customary conditions.

Generali had previously received approval from India’s Competition Commission to buy Industrial Investment Trust’s 16% stake in life insurance joint venture, Future Generali India Life Insurance Company (FGILICL). It has also agreed to invest up to Rs 330 crore in installments in FGILICL to fund its growth plans.

Pursuant to these transactions, Generali will acquire majority ownership and control in the two insurance joint ventures.

FEL has received offers from potential buyers for its remaining 24.91% stake in FGIICL. It is also considering options for the sale of its 33.3% stake in the life insurance joint venture and expects to finalize the exit of its stake in the insurance joint ventures within a specified timeframe to meet its commitment under the of the ad hoc restructuring plan implemented on August 6. Circular 2020 issued by the Reserve Bank of India regarding the Covid-19 stress resolution framework.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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