Larsen & Toubro, Generali Group and the Future Group have signed a non-binding term sheet for the merger of L&T General Insurance Company Limited (LTGI) and Future Generali India Insurance Limited (FGI).On the completion of the merger, L&T will own a 51 per cent stake, Generali a 26 per cent shareholding, with the balance to be held by Future Group in the merged entity.
"The completion of the transaction is subject to satisfactory due diligence by both the parties, execution of mutually agreed definitive binding documents," L&T said in a stock exchange statement today.
R. Shankar Raman, chief financial officer at L&T, told NDTV Profit that the insurance deal with the Future Group will speed up its plans for the general insurance space as well as help it break even faster.
The final valuation will emerge after the due diligence is done, he said, adding that L&T does not anticipate any significant cash top-up to achieve the shareholding pattern.
The deal value is roughly Rs. 500 crore, Reuters reported on Monday, citing a source with direct knowledge of the matter.
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