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Generali agreed to buy from its local partner, debt-laden Future Group, 25 per cent of the shares of Future Generali India Insurance for 145 million euros ($163 million), bringing its total stake to 74 per cent.
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Italy's Generali said on Thursday it would become the majority shareholder in both its life and non-life Indian insurance joint ventures.
Generali agreed to buy from its local partner, debt-laden Future Group, 25 per cent of the shares of Future Generali India Insurance for 145 million euros ($163 million), bringing its total stake to 74 per cent.
Italy's largest insurer also agreed to acquire the whole stake - or some 16 per cent - held by Industrial Investment Trust Limited in Future Generali India Life (FGIL) for around 26 million euros. It will also subscribe a preferential allotment of shares in FGIL.
Both moves would take its holding in FGIL to 68 per cent, which may increase to 71 per cent by the end of this year following another preferential allotment.
The move, in line with Generali's strategy to position itself in fast-growing markets, follows the decision in 2021 by the Indian government which allows foreign companies to now hold a share of a maximum of 74 per cent in a local entity in the insurance sector, up from the previous 49 per cent.
(PTI)