Monday, December 23, 2013

Future Group to sell 22.5% stake in insurance biz to IITL

Country's leading retailer Future Retail Ltd (formerly Pantaloon Retail), has announced that it has sold 22.5 % stake in life insurance joint venture Future Generali India Life Insurance to Mumbai-based Industrial Investment Trust Ltd (IITL), a non-deposit taking, non-banking finance company in the insurance broking business. The company said it has got the necessary regulatory nod from the Insurance Regulatory and Development Authority (IRDA), the Competition Commission of India (CCI) and the Reserve Bank of India (RBI) for the deal.

According to the sources close to the development, the deal value is at around Rs 1,500 crore. And, Systematix Capital is the sole advisor to the deal.

The share purchase agreement (SPA) was announced on March 8, 2013. In a filing with the Bombay Stock Exchange (BSE), the company said it has received all necessary approvals from the regulatory and the governmental authorities.

Post completion of the deal, Future Group will hold 52% stake in Future Generali India, while the foreign partner, Participatie Maatschappij Graafschap Holland NV, a subsidiary of Assicurazioni Generali S.P.A., will continue to hold 25.5% stake in the insurance joint venture.

To ease its huge debt burden, the Kishore Biyani-led Future Group had recently sold 44.5% stake in Capital Foods for Rs 180 cr.

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