Future Enterprises to sell 25% in general insurance JV to partner Generali

Future Enterprises on Thursday said it has agreed to sell a 25% stake in its general insurance joint venture, Future Generali India Insurance Co Ltd, to its partner in the entity Generali Participations Netherlands N. V. for a cash consideration of ₹1252.96 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 company’s remaining interest in the general insurance business, directly or through a nominee, at an agreed valuation subject to applicable regulatory approvals, Future enterprises said in the statement.

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 a 16% stake held by Industrial Investment Trust Limited in Future Generali India Life Insurance. It has also agreed to invest up to ₹330 crore in tranches in the life insurance business to fund its growth plans.

Pursuant to these transactions, Generali will acquire a majority stake and control in both insurance joint ventures.

Future Enterprises said that it has received offers from potential buyers for its remaining 24.91% interest in Future Generali India Insurance Co Ltd.

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 Joint Ventures in a time bound manner to meet its commitment under One Time Restructuring Plan implemented under August 6, 2020 circular issued by Reserve Bank of India in relation to Resolution Framework for Covid-19 related stress.

Metta Capital Advisors acted as the financial advisors and Trilegal acted as the legal advisors to Future Enterprises for this transaction.