Central Bank of India’s bid for Future’s insurance JV stakes gets CoC nod
FEL holds direct and indirect investments in Future Generali India Insurance Company Limited—a joint venture between the company (24.91 per cent shareholding) and Generali Group.
State-owned Central Bank of India has pipped a consortium of True North and M Pallonji to emerge as the successful bidder for Future Enterprises Ltd’s (FEL) stake in its insurance joint ventures with Italian insurer Generali. The lender’s bid of Rs 508 crore was approved by the committee of creditors (CoC) of FEL, which is currently under the corporate insolvency resolution process.
Following this, the resolution professional of FEL, Avil Menezes, has issued the letter of intent to Central Bank of India, a source aware of the development said, adding that the state-owned lender now has to get the insurance regulator’s—Insurance Regulatory and Development Authority of India (Irdai)—approval within 90 days to buy FEL’s stake in its insurance ventures. After obtaining approval from Irdai, the bank will also need to secure approval from the Competition Commission of India. However, approval from the National Company Law Tribunal will not be required.
Central Bank of India is buying a 25.18 per cent stake in FEL’s general insurance JV—Future Generali India Insurance—and a 24.91 per cent stake in its life insurance JV—Future Generali India Life Insurance, the source quoted above said.
On Wednesday, the state-owned lender informed the exchanges that it has been declared the ‘successful bidder’ by the CoC for the sale of Category 1 assets of FEL, i.e. the stake held by FEL in Future Generali India Life Insurance and Future Generali India Insurance. The bank, however, did not disclose the bid amount for the assets.
The resolution professional of FEL, back in December 2023, had invited expressions of interest from interested entities to sell the 25.18 per cent stake it holds in Future Generali India Life Insurance; 0.51 per cent stake in Future Generali India Insurance; 49.81 per cent stake in Sprint Advisory Services; and 49.82 per cent stake in Shendra Advisory Services.
FEL holds direct and indirect investments in Future Generali India Insurance Company Limited—a joint venture between the company (24.91 per cent shareholding) and Generali Group (74 per cent shareholding). The company is engaged in the non-life insurance business.
Additionally, the company holds direct and indirect investments in Future Generali India Life Insurance Company Limited—a joint venture between the company and Generali Group, where Future Group, through various entities, owns a 25.18 per cent stake.
First Published: Aug 21 2024 | 7:20 PM IST