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March 1, 2022

Indian court blocks Future’s general insurance deal with Generali

Future Enterprises’ sale of its stake in the general insurance joint venture with Italy’s Generali has hit a roadblock after an Indian court blocked the deal, Reuters reported citing sources. 

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2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
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The deal is facing a legal challenge from IDBI Trusteeship, which is representing a group of foreign bondholders. 

In January 2022, Future Enterprises signed an agreement to sell a 25% stake in Future Generali India Insurance (FGII) to the Italian insurer for around €145m.

The bondholders had subscribed to Future Enterprises’ entities that had defaulted. 

They had rights, which mandated Future Enterprises to not dilute its stake in Future Generali, one of the sources said.

After hearing IDBI’s plea, a Mumbai city civil court has ordered Future Enterprises to hold the stake sale until 10 March 2022.

Notably, before IDBI reached out to the court it raised its concerns with Future, which did not fetch any response, the news agency said citing the court order.

The news comes as the Future is stuck in a legal dispute with Amazon over the sale of its retail operations. 

Future had planned to use the proceeds from insurance asset sales to support its retail operations that have suffered due to the Covid-19 pandemic. 

If the deal materialises, Generali will hold about 74% in FGII and capitalise on the growth opportunities offered by the Indian market.

At the time, Generali also brokered a deal worth €26m to buy about a 16% stake of Industrial Investment Trust Limited (IITL) in Future Generali India Life (FGIL).

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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