Power Finance Corporation’s EGM passes resolution for REC takeover
The extra ordinary general meeting (EGM) of the members of state owned Power Finance Corporation Ltd (PFC) on Tuesday cleared the decks for the power sector lender to buy the Union government’s entire stake and acquire management control in REC Ltd (formerly Rural Electrification Corp.).
The EGM held at Gurgaon passed a resolution for PFC “to enter into a Related Party Transaction (RPT) for acquiring GoI’s 1,03,93,99,343 fully paid up equity shares of REC Limited together with management control.”
The government is likely to net around Rs14,000 crore in its disinvestment kitty with the Cabinet Committee on Economic Affairs (CCEA) in December approving the sale of the government’s stake in REC to PFC, along with management control.
