Muristek
New Delhi, January 27
Debt-ridden Future Group will exit from the insurance business in a time-bound manner and plans to sell its 25% equity in Future Generali India Insurance Company Ltd (FGIICL) to its JV partner Generali for a cash consideration of Rs 1,252.96 crore, as part of its asset monetisation plans to pare debts.
FGIICL is a joint venture between Future Enterprises Ltd (FEL) and Generali Participations Netherlands NV (Generali) and operates in the general insurance sector.
Besides, the Kishore Biyani-led group, is also exploring options for the sale of its stake in Future Generali India Life Insurance Company Ltd (FGILICL), another Joint Venture with Generali providing life insurance services.
"The company is exploring options for the sale of its remaining interests in FGILICL and FGIICL and it expects to complete the exit of its holding in the insurance joint ventures in a time-bound manner," FEL said in a regulatory filing.
The sale is to meet FEL's commitment under the One-Time Restructuring (OTR) scheme for Covid-hit companies, which it had entered into last year with a consortium of banks and lenders. As part of that, the Future Group firm has to repay the loan through asset monetisation.
As part of OTR, FEL has to pay around Rs 2,200 crore by March-end this year.
Currently, FEL holds a 49.91% stake in the general insurance firm FGIICL and after the deal with Generali, it will come down to 24.91%. — PTI
Asset monetisation plans
Currently, Future Enterprises holds a 49.91% stake in the general insurance firm Future Generali India Insurance Company Ltd (FGIICL) and after the deal, it will come down to 24.91% Besides, the Kishore Biyani-led group, is also exploring options for the sale of its stake in Future Generali India Life Insurance Company Ltd, another joint venture with Generali providing life insurance services