Future Enterprises gets court nod for stake sale in Generali insurance venture

MUMBAI, March 8 (Reuters) - An Indian court has cleared the path for Future Enterprises' FURE.NS stake sale in its general insurance joint venture with Italy's Generali GASI.MI , an exchange filing showed on Monday.

A Mumbai city court late last month put on hold Future's planned sale of its 25% stake in Future Generali India Insurance Company to Generali for 12.52 billion rupees ($162.82 million), after a legal challenge from some bondholders of Future companies that had defaulted.

IDBI Trusteeship, the group representing the bondholders, said that they had rights mandating Future Enterprises not to dilute its Future Generali stake, according to a source.

But after an appeal from Future Enterprises, the high court on Monday set aside the city court's order, the company said in the filing Link

Future, Generali and IDBI Trusteeship did not respond to requests for comment.

Apart from the Generali joint venture, Future Enterprises holds Future Group's investments in textile manufacturing, supply chain and logistics.

The latest order comes as a relief to the Future Group, which is in dire need of funds to pay off a mountain of debt. It has been fighting a legal battle with Amazon.com Inc AMZN.O , which has objected to the sale of its retail assets to rival Reliance Industries RELI.NS . ($1 = 76.8950 Indian rupees)
Reporting by Abhirup Roy in Mumbai; Editing by Rashmi Aich

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.