Bandhan Bank may acquire controlling stake in Future Generali Insurance: report
27 Oct 2021
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Bandhan Financial Holdings, the holding company of Kolkata-based Bandhan Bank Ltd, has offered to buy 34 per cent stake in Future Group and 17 per cent stake in the Future Generali India Life Insurance Company at a premium, according to media reports.
Kishore Biyani’s Future Group is reported to be looking at monetising its stake, due to liquidity tightness caused by the pandemic-led disruptions.
Future Generali India Life Insurance Company is a joint venture of Future Group and the Industrial Investment Trust (IIT) with Italian insurance and asset management giant, Generali.
Negotiations are at a preliminary stage and the Kolkata-based financial major is unlikely to pay too high a premium for the stake, reports citing source privy to the matter said.
Generali, which holds a larger, 49 per cent, stake in the joint venture, has a greater say in any transaction as the deal depends largely on the Italian group.
If Bandhan acquires a controlling stake in the two companies, given its large-scale distribution network, it would ramp up the life insurance’s sale, while Generali too would have a deeper grip on the Indian insurance market.
However, Bandhan Financial Holdings has clarified that it will only proceed with the deal on getting a majority vote, the report added citing people close to the matter.
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