The Power Finance Corporation (PFC) plans to pay Rs 14,500 crore to the Government of India on March 28 to close the takeover of the majority stake in REC. The power sector-lender would buy REC’s 103.94 crore equity shares at a Rs 139.5 per share —or 1.1% lower than the latter’s closing price on Friday.
Apart from making a major contribution to the Centre’s disinvestment kitty set for the year, the transaction would pave the way for PFC to become a promoter and the holding company of REC. The Cabinet Committee on Economic Affairs, on December 6, 2018, had approved the strategic sale of the government’s 52.63% of the paid-up equity shareholding of REC to PFC, along with transfer of management control.
