Future Group sells 22.5% in life insurance business to IITL for Rs1,500 crore
18 Dec 2013
Future Retail Ltd has sold 22.5-per cent stake in its life insurance venture, Future Generali India Life Insurance to Industrial Investment Trust Ltd (IITL), a Mumbai-based non-banking financing company, for around Rs1,500 crore.
IITL had, on 8 March 2013, entered into a share purchase agreement (SPA) with Future Retail (FRL) to acquire part of FRL's shareholding in Future Generali India Life Insurance Company (FGILICL), representing 22.5 per cent of the equity share capital of FGLICL.
Mumbai-based IITL is a non-deposit taking, non-banking finance company in the insurance broking business.
The SPA was subject to getting necessary approvals from government and regulatory authorities.
In a filing with the Bombay Stock Exchange, Future Retail said on Tuesday that the deal has received necessary approvals from governmental and regulatory authorities, including the Competition Commission of India, Insurance Regulatory and Development Authority of India and the Reserve Bank of India, and that the two parties have consummated the transaction on 17 December 2013.
The divestment leaves Future Group with a majority stake of 52 per cent stake in FGLICL, with Participatie Maatschappij Graafschap Holland NV holding 25.5 per cent stake and IITL holding the remaining 22.5 per cent stake.
Systematix Capital is the sole advisor to the deal.
The Kishore Biyani-led Future Group had recently sold 44.5-per cent stake in Capital Foods for Rs180 crore to ease its huge debt burden.
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