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Future to sell 25% stake in general insurance JV to Generali Group for Rs.1,252-Cr

BSE Disclosure  

Mumbai-based, publicly listed Future Enterprises is to sell a 25% stake in its general insurance joint venture, Future Generali India Insurance Company Ltd (FGIICL), to its JV partner Generali Participations Netherlands NV for INR 1252.96 crore in cash, plus an additional consideration that is linked to the date of the closing of the transaction. Generali has also acquired an option to buy out Future's remaining interest in FGIICL, directly or through a nominee, at an agreed valuation subject to applicable regulatory approvals. Metta Capital Advisors acted as the financial advisors and Trilegal acted as the legal advisors to Future Enterprises for this transaction. Generali had earlier received approval from the Competition Commission of India (CCI) to purchase a 16% stake held by Industrial Investment Trust Ltd in the life insurance joint venture, Future Generali India Life Insurance Company Ltd (FGILICL) It has also agreed to invest up to INR 330 crore in tranches in FGILICL to fund its growth plans. Pursuant to these transactions, Generali will acquire a majority stake and control in both the insurance JVs. Future Enterprises has received offers from potential buyers for its remaining 24.91% interest in FGIICL. It is also exploring options for the sale of its 33.3% interest in the life insurance JV and expects to complete the exit of its holding in the insurance JVs in a time bound manner to meet its commitment under its “One Time” debt restructuring plan.