Central Bank of India Close to FEL Insurance Stake Deal

19 Aug 2024 , 10:08 AM

The Central Bank of India is on the verge of purchasing Future Enterprises’ (FEL) holdings in two insurance joint ventures as the debt-ridden conglomerate enters insolvency proceedings.

According to news reports, the state-owned bank is expected to acquire Future Enterprises’ 25% interest in Future Generali India Insurance Co. and 33% stake in Future Generali India Life Insurance Co. The acquisition comes as the bank strives to strengthen its position in the insurance business.

Lenders to Future Enterprises had separated the company’s assets into three categories: insurance ventures, textile firms, and residual stakes.

According to the report, Italy’s Generali, which owns 74% of the joint ventures, sought to collaborate with a public sector lender to help boost distribution.

Central Bank has emerged as the frontrunner, having outbid many competitors, including Capri Global, JC Flowers, and Authum.

While Authum, Capri, and JC Flowers expressed an interest in acquiring all Future Enterprises holdings, Central Bank concentrated only on the insurance stakes. Other than Central Bank, M Pallonji & Co., Kotak Alternate Asset, and Globe Capital had expressed interest in the insurance stakes.

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