Future Enterprises announced on Thursday that it will sell 25 per cent of its stake in the general insurance joint venture Future Generali India Insurance Company Limited (FGIICL) to its JV partner Generali Participations Netherlands NV (Generali) for Rs 1252.96 crore.
Generali will also have the option to buy out the company’s remaining interest in FGIICL, subject to applicable regulatory approvals, the company said.
The insurer had also earlier received approval from the Competition Commission of India to purchase 16 per cent stake held by Industrial Investment Trust Limited in the life insurance joint venture Future Generali India Life Insurance Company Limited (FGILICL). It will also invest up to Rs 330 crore in tranches in FGILICL to push its growth plans.
Generali will then acquire a majority stake and control in both the insurance joint ventures, following these deals.
Future, on the other hand, has plans to offload its stake in both the general and life insurance JVs. It has received offers from potential buyers for its remaining 24.91 per cent interest in FGIICL, and is exploring options for sale of its 33.3 per cent stake in the life insurance JV. It expects to complete the exits from its insurance JVs soon, as per its commitment under the One Time Restructuring Plan implemented according to the August 6, 2020 circular by Reserve Bank of India.
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