Allaying concerns of the investors over the proposed acquisition in REC by the PFC, joint secretary, ministry of power, Arun Kumar Verma, said the former will continue to be a government entity and that the process of price determination for the transaction is underway.
Power Finance Corporation (PFC) is likely to close the deal by March 31 this year and is not considering extending open offer to the minority stakeholders, Verma said while addressing a media conference. “According to regulations, PFC should have a major hold post acquisition. In this case PFC is a government company and REC will also continue to be a government entity. The government will have a control and it will remain a central public sector enterprise (CPSE),” Verma said.
When asked about the concerns over the possibility of breach of regulations (regarding government control) post the acquisition, he said, “when investors look at investments, the scout for safe zones. If there is any interpretation, then it can be negotiated. In such kind of transactions, care is taken for all aspects.”
