Engineering conglomerate Larsen & Toubro (L&T) plans to sell 49 per...
Larsen and Turbo and Future Group have entered into a non obligatory agreement to merge the businesses of L&T General Insurance and Future Generali India Insurance for an approximate amount of Rs. 600 crores. This merger is subject to the receipt of necessary approval from market regulator Insurance Regulatory and Development Authority (IRDA).
Further this deal will be considered as concluded only when the relevant information’s are identified and an agreement is signed by both the parties and approval of other corporate bodies are received.
Once this deal is signed, L&T will be the biggest shareholder, holding 51% of the total shares of the company. Further 26% will be held by Generali and balance 23% will be held by Future Group.
With regard to the time frame for the completion of the proposed merger, Mr. Sivaraman, President and Whole Time Director of L&T Finance Holding and also incharge of L&T General Insurance said that at present there is no specific time limit to complete the amalgamation activity.
On above he added that, post merger company intends to purchase more shares in the company.
With regard to business statistic, as available with IRDA, the gross written premium of the company for the period ended December 2012 stands to Rs. 855 crores and the loss for the quarter ending same period increased to Rs. 6.3 crores as against the loss of Rs. 3.5 crores for the same period last year.
L&T had too reported a loss of Rs. 24.6 crores for the same period as against the loss of Rs. 17.8 crores for the corresponding period last year.