Future Enterprises to sell 25Percentage stake in Future Generali India Insurance Company

29 Jan 2022 , 01:32 AM

Future Enterprises has on 26 January 2022 agreed to sell a 25Percentage stake in its General Insurance Joint Venture Future Generali India Insurance Company FGIICL to its Joint Venture partner Generali Participations Netherlands N VGenerali for a cash consideration of Rs 125296 crore 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 the Companys remaining interest in FGIICL directly or through a nominee at an agreed valuation subject to applicable regulatory approvals The transaction is subject to applicable regulatory approvals and other customary conditions Generali had earlier received approval from the Competition Commission of India to purchase 16Percentage stake held by Industrial Investment Trust in the Life Insurance Joint Venture Future Generali India Life Insurance Company FGILICL It has also agreed to invest up to Rs 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 Insurance Joint Ventures FEL has received offers from potential buyers for its remaining 2491Percentage interest in FGIICL It is also exploring options for the sale of its 333Percentage interest in the Life Insurance JV and expects to complete the exit of its holding in the Insurance Joint Ventures in a time bound manner to meet its commitment under One Time Restructuring Plan implemented under 06 August 2020 circular issued by Reserve Bank of India in relation to Resolution Framework for Covid-19 related stress