Debt-ridden Future Group has announced a 25 percent equity stake in Future General India Insurance Company Limited (FGIICL) to pay Rs 1,252.96 crore to its JV partner General.
In addition, Future Group reported late-night regulatory filing that FCIICL, which operates in the general insurance business, has also acquired an option to buy the remaining interest of Future Enterprises Limited (FEL). FGIICL is a joint venture between Future Enterprises and General Participations Netherlands NV (General).
FEL has agreed to sell a 25 percent stake in FGIICL, its general insurance joint venture, to its joint venture partner General for Rs 1,252.96 crore, with additional consideration related to the closing date, Future Group said in a regulatory filing.
As part of the transaction, subject to applicable regulatory approvals, Generali also has the option to purchase FEL’s remaining interest in FGIICL “directly or through a nominee”, FEL said.
According to the company, FGIICL received offers from various potential buyers for the remaining 24.91 percent interest.
In addition, FEL is exploring the option of selling its 33.3 percent stake in Life Insurance JV – Future General India Life Insurance Company Limited.
The project was implemented under a circular issued by the Reserve Bank on August 6, 2020, in connection with the resolution framework for Covid-19 pressure,” it said.
Earlier this month, the General Competition Commission of India approved the acquisition of a 16 percent stake in Industrial Investment Trust Limited in FGILICL.
It has also agreed to invest up to `330 crore in FGILICL to finance growth projects.
Retail Infrastructure FEL develops acquires and leases Future Group, which owns and operates retail chains such as Big Bazaar, Easy Day, and Heritage.
Like other Future Group companies, Covid has entered into an FEL OTR scheme for companies affected by a consortium of banks and lenders. As part of this, the loan must be repaid through asset monetization.
In August 2020, Future Group, led by Kishore Biyani, announced a Rs 24,713 crore deal to sell its retail, wholesale, logistics, and warehousing business to Reliance Retail Ventures Ltd, a subsidiary of Reliance Industries Limited.
The company transferred to Reliance Retail is Future Enterprises Limited as part of the deal. Future Group’s 19 companies – FEL – operating in retail, wholesale, logistics, and warehousing assets will be merged into Reliance.
However, Amazon, a global e-commerce leader, is competing in the deal with a 49 percent stake in Future Coupons Pvt Ltd (FCPL), a shareholder of Future Retail Limited.
The matter is currently pending before the Supreme Court and the Singapore International Arbitration Center (SIAC). Reliance Retail Ventures has extended the deadline for the completion of its Rs 24,713 crore contract with Future Group for the second time as it is still awaiting regulatory and judicial clearances.
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