L&T Finance to buy 50 % Future Generali general insurance JV: report
25 March 2013
L&T Finance, the financial sector arm of engineering and construction major Larsen & Toubro has agreed to buy 50 per cent stake in Future Generali India Insurance company from Kishore Biyani's Future Group.
Reports citing a source with direct knowledge of the matter said the retail chain operator Future Group has agreed to sell a 50 per cent stake in its general insurance joint venture with Italy's Generali SpA to L&T Finance for around Rs500 crore.
After both companies sign the non-binding agreement and the deal is sealed, L&T's general insurance arm will merge with Future Generali Indian Insurance Company, the report said.
The Future Group owns 74 per cent stake in the insurance company JV while the Italian firm owns 26 per cent.
Of the 74 per cent, Biyani's flagship Pantaloon Retail and special purpose vehicles hold 50 per cent while 24 per cent is held by the Biyani family.
Future Group will continue to hold 23 per cent in the merged entity, L&T will hold 51 per cent and Generali will own 26 per cent, the reports said.
Future Group, the country's top retailer, had early this month, agreed to sell 22.5 per cent stake in its life insurance joint venture with Italy's Generali Group to Industrial Investment Trust Ltd in a deal estimated at Rs280-300 crore.
The deal values Future Generali India Life Insurance Co at approximately Rs1,250 crore.