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
New Delhi, NFAPost: Debt-ridden Future Group said it has completed the sale of its 25% equity in Future Generali India Insurance 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, 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% 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 Future Group 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.