India-based Future Enterprises Ltd (FEL) is looking to sell its stake in the insurance business to raise around $390m (INR30bn), media reports said citing PTI.
The proceeds will be used to save FEL’s debt-laden parent Future Group, which is subject to insolvency proceedings.
Go deeper with GlobalData
The news comes as FEL wrapped up the sale of a 25% stake in the general insurance joint venture, Future Generali India Insurance (FGII).
As part of the deal announced in January this year, Italy’s Generali had agreed to pay around $153m for the stake in FGII.
Generali international CEO Jaime Anchústegui Melgarejo said: “This acquisition is in line with Generali’s strategy to reinforce its position in a high potential market and we look forward to deepening our presence in India, becoming Lifetime Partners to an increasing share of Indian customers in both Life and P&C businesses.”
After the divesture, FEL continues to hold just under a 25% stake in the general insurer.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“Now in the next 30-40 days, they will sell the remaining 25% stake of the general insurance business for another INR12.5bn to another entity,” a source was cited as saying.
Other than FGII, the FEL is also planning to offload its 33.3% stake in the life insurance joint venture, Future Generali India Life (FGIL).
“Also in separate deals remaining 33% stake of life insurance business will be sold to Generali and separately to one more Indian entity for a little above INR4bn,” the source added.
The divestiture will mark FEL’s complete exit from the insurance space.
This deal is part of Future Group’s efforts to pay off as much debt of various lenders so that it can be regularised.
FEL has amassed over INR67bn in debt, which includes both short-term and long-term debt.
