Sources say that the Italian insurer is still negotiating the valuations for the proposed deal with Reliance.
Generali Group, an Italian insurer which is the foreign JV partner of Future Group’s life and general insurance business, is looking to exit from the venture, said a senior executive familiar with the development. When Cafemutual contacted Future Generali for an official response, the company said that no such deal was in the pipeline.
However, the highly placed source confirmed that the Italian insurer is looking to buy 26% stake in Reliance General Insurance but is unhappy with the valuations. Both the companies are still negotiating the deal. Under Indian law, a foreign firm can only pick up stake in a single domestic insurer in the same space. Generali will have to first exit from its existing JV with Future Group and then look at a fresh JV with Reliance General Insurance. In the merged entity, Generali can hold only 26%, the cap on foreign shareholding in an insurance company.
Currently, Future Group owns 74% in Future Generali General Insurance and Generali owns the rest. Out of this 74%, Pantaloon Retail (directly and via special purpose vehicles) holds close to 50%, while the Biyani family holds around 25 percent.
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