l&T Finance will buy Pantaloon Retail’s 50 per cent stake in the general insurance business of Future Generali for an estimated Rs560 crore. The deal values Future Generali India Insurance Company at around Rs1,100 crore.
Pantaloon Retail would be exiting the venture by selling 50 per cent stake through direct and indirect transfer to l&T Finance, sources said, adding the deal could be valued around Rs560 crore.The contours of the deal are being finalised and an official announcement is expected on Tuesday.
Currently Future Group holds 74 per cent stake in the Future Generali India Insurance Company, while the remaining 26 per cent is with Italy-based Generali Group.
Out of Future Group’s 74 per cent stake, 50 per cent was with Pantaloon Retail and 24 per cent was with the promoter of the retail chain -- Kishore Biyani family.
Earlier this month, Pantaloon Retail had sold 22.5 per cent stake in Future Generali life Insurance to investment company IITl for an estimated value of over Rs300 crore. The deal valued the JV at over Rs1,330 crore.
The move was aimed at helping Future Group to pare some its debt.Post the transaction, l&T Finance would become the majority shareholder with 50 per cent stake in the general insurance venture.
Future Group, which runs stores under formats like Big Bazaar, Food Bazaar, e-zone is estimated to have a consolidated debt of Rs6,000 crore.last year, the group had hived off its flagship Pantaloon into a separate entity to sell majority stake in it to Aditya Birla Nuvo, which agreed to infuse Rs1,600 crore.
Similarly, it had sold 53.67 per cent stake in Future Capital Holdings to US-based private equity Warburg Pincus to raise an estimated Rs560 crore.
Future Generali is a joint venture between the India-based Future Group and the Italy-based Generali Group.Future Generali is present in India in both the life and Non-life businesses as Future Generali India life Insurance Co. ltd. and Future Generali India Insurance Co. ltd.
Future Group, led by its founder and Group CEO, Kishore Biyani, is one of India’s leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics.
led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square feet of retail space in 71 cities and towns and 65 rural locations across India. Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30,000 people and is listed on the Indian stock exchanges. The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail. Pti