Pantaloon Retail gains on stake sale in general insurance arm

The company has signed a non-binding term sheet with L&T for merger of its insurance joint venture company Future Generali India Insurance Company with L&T General Insurance Company.

Pantaloon Retail (India) is trading higher by almost 3% at Rs 150 in early morning deals after the Future Group Company said that it has sold its partial stake in the general insurance business of Future Generali.

“Pantaloon Retail (India) has signed a non-binding term sheet with L&T for merger of its insurance joint venture company Future Generali India Insurance Company with L&T General Insurance Company and sale of partial stake to L&T and its other joint venture partner Participatie Maatschappij Graafschap Holland NV in the merged entity,” Pantaloon Retail (India) said in a filing.

Participatie Maatschappij Graafschap Holland NV is a subsidiary of Assicuranzioni Generali S.P.A.

On completion of the merger, L&T and Generali would acquire such number of shares as would result in L&T having a 51% stake, Generali having a 26% shareholding and the balance to be held by Future Group in the merged entity.

The stock opened at Rs 147 on NSE and has seen a combined around 500,000 shares changing hands on the counter so far on NSE and BSE.