By Malvika Gurung
Investing.com -- Kishore Biyani’s Future Group is keenly looking out to monetize its stake, due to the pandemic-led disruptions that caused liquidity tightness.
Amid the watch-out, the holdings company of the Kolkata-based Bandhan Bank Ltd (NS: BANH ), Bandhan Financial Holdings has offered to pay a premium sum to buy out a 34% stake in Future Group and 17% stake in the Future Generali (MI: GASI ) India Life Insurance Company, reported ET.
Future Generali India Life Insurance Company is a joint venture between three companies, Future Group, Industrial Investment Trust (IIT) and the Italian insurance and asset management giant, Generali.
Generali holds a majority stake of 49% in the JV and sources state that the Italian major will have a contributing say in materializing the deal.
There have already been preliminary talks and while the Kolkata-based financial major is willing to pay for a controlling premium, it will not pay too high too, informs a source privy to the matter. Also, even though Future may be open to cash out, Generali’s say would matter too, the source added.
If Bandhan acquires a controlling stake in the two companies, given its large-scale distribution network, it would ramp up the life insurance’s sale, while Generali too would have a deeper grip on the ‘under-penetrated Indian insurance market.
However, Bandhan Financial Holdings has clarified that it will only proceed with the deal on getting a majority vote, added people close to the matter.
Bandhan Bank’s shares are trading flat at Rs 316 at 9:40 am on Thursday.
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It's a Positive sign for Bandhan Bank, this will improve market of Bandhan BankLike 3