Pantaloon to sell 50 percent Future Generali stake to L&T Finance

Recent media reports suggest L&T Finance

plans to buy Pantaloon Retail's 50 percent stake in the general insurance business of Future Generali for an estimated Rs 560 crores. The deal values Future Generali India Insurance Company approximately at Rs 1,100 crores. Sources say, Pantaloon Retail would be exiting the venture by selling 50 percent stake through direct and indirect transfer to L&T Finance. Further the deal could be valued around Rs 560 crores and the outlines are being finalised and an official announcement is on its way. Currently 26 percent is with Italy-based Generali Group while 74 percent being held by the Future Group.

The Kishore Biyani family has stated in the media that out of Future Group’s 74 percent stake, 50 percent was with Pantaloon Retail and 24 percent was with the promoter of the retail chain. Earlier this month, Pantaloon Retail had sold 22.5 percent stake in Future Generali Life Insurance to investment company IITL for an estimated value of over Rs 300 crores. The deal valued the JV at over Rs 1,330 crores and the move is aimed to help Future Group to reduce some of its debt.