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Future Group sells 25% stake in FGIICL to partner Generali for Rs 1,266 cr

Debt-ridden Future Group said it has completed the sale of its 25 per cent equity in Future Generali India Insurance Company Ltd (FGIICL) to its JV partner Generali for Rs 1,266.07 crore

Future Group | Future Generali India Insurance

Press Trust of India  |  New Delhi 

Future Generali

Debt-ridden on Thursday said it has completed the sale of its 25 per cent equity in Company Ltd (FGIICL) to its JV partner Generali for Rs 1,266.07 crore as part of its asset monetisation plans to pair debts.

After receiving mandatory approvals from the government and key regulators, the sale of a 25 per cent share took place on Thursday, a regulatory filing by Future Enterprises Ltd (FEL) said.

"Pursuant to receipt of the key approvals from governmental and regulatory authorities, the said transaction has been consummated on 5th May 2022. Pursuant to the consummation of the transaction, the Company has sold 25 per cent shares for a consideration of Rs 1,266.07 crore," it said.

Post completion of the transaction, FEL will continue to hold directly and indirectly 24.91 per cent shares in FGIICL, the group firm said.

Earlier on January 26, 2022, FEL announced to sell its 25 per cent stake in FGIICL to Generali Participations Netherlands NV (Generali).

As part of the deal, Generali has an option to buy out FEL's remaining interest in FGIICL "directly or through a nominee" at an agreed valuation, subject to applicable regulatory approvals, FEL had said earlier.

Moreover, FEL had also said that it was exploring the options to sell its 33.3 per cent stake in its Life Insurance JV - Future Generali India Life Insurance Company Limited (FGILICL), as it progresses on its plans to monetise its investment in its insurance joint ventures with Generali.

FEL, part of Kishore Biyani led firm, develops, owns and leases the retail infrastructure for the Future Group, which owns and operates retail chain as big bazaar and Easyday and Heritage, among others.

Last month, FEL defaulted on repayment of Rs 2,911.51 crore of loans to its lenders. The total financial indebtedness of the listed entity, including short-term and long-term debt is Rs 6,778.29 crore.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Thu, May 05 2022. 23:32 IST