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  Business   Companies  28 Jan 2022  Future to sell 25% stake in Generali JV for Rs 1,250 cr

Future to sell 25% stake in Generali JV for Rs 1,250 cr

THE ASIAN AGE.
Published : Jan 28, 2022, 11:25 am IST
Updated : Jan 28, 2022, 12:50 pm IST

The stake sale will bring Generali’s total shareholding in the JV to around 74 per cent

The Kishore Biyani-led company, which is locked in a dispute with global e-commerce major Amazon, said that it has received offers from various potential buyers for its remaining 24.91 per cent interest in FGII. —  DC Image
 The Kishore Biyani-led company, which is locked in a dispute with global e-commerce major Amazon, said that it has received offers from various potential buyers for its remaining 24.91 per cent interest in FGII. — DC Image

Mumbai: Beleaguered Future Enterprises Ltd has signed twin deals with its joint venture partner Generali Group to offload its stake in its non-life and life insurance companies.

The debt laden conglomerate plans to sell its 25 per cent stake in its non-life arm ‘Future Generali India Insurance Company Ltd (FGII)’ to its joint venture partner Generali for a cash consideration of Rs 1,252.96 crore as part of its asset monetisation plans to pare debts along with an additional consideration that is linked to the date of the closing of the transaction.

 

The stake sale will bring Generali’s total shareholding in the JV to around 74 per cent, the maximum permitted FDI limit in insurance sector while Future’s stake in general insurer will come down to 24.91 per cent from the current 49.91 per cent after the disinvestment.

The Kishore Biyani-led company, which is locked in a dispute with global e-commerce major Amazon, said that it has received offers from various potential buyers for its remaining 24.91 per cent interest in FGII.

On the other hand, in its life insurance business Future Generali India Life (FGIL) an agreement has been signed to sell the entire stake. In the life Insurance JV, FGILI, Future Enterprises currently holds 33.29 per cent stake, while Generali is a controlling shareholder with 49 per cent stake and the balance 16.6 per cent is with Industrial Investment Trust Limited.

 

Tags: kishore biyani, future enterprises ltd, generali group