The transaction was valued at around INR12.66 billion (SG$230 million), Business Standard reported. Following the transaction, subsidiary Future Enterprises will continue to hold 24.91% of the general insurer, both directly and indirectly.
As part of the deal, Italian insurance giant Generali has an option to buy out Future Enterprises’ remaining holdings in Future Generali India Insurance Company “directly or through a nominee” at an agreed valuation, subject to applicable regulatory approvals, the report said.
Future Enterprises said that it is also considering selling its 33.3% stake in its life insurance business, Future Generali India Life Insurance Company, as it seeks to monetise its investments in its insurance joint ventures with Generali.
In April, Future Enterprises defaulted on INR29.1 billion in loans to various creditors. The company, part of Kishore Biyani-led Future Group, has long- and short-term debts totalling over INR67.7 billion. The group’s primary business is in retail, owning supermarket chains such as Big Bazaar and Food Bazaar.
