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PFC completes REC acquisition, pays Rs 14,500 cr to government

PFC bought REC shares at Rs 139.50 per piece with total acquisition cost of about Rs 14,500 crore.

Press Trust of India  |  New Delhi 

Power Finance Corporation, PFC, PFC logo
PFC has raised money from Bank of Baroda, Life Insurance Corporation and State Bank of India, among others, to make the payment.

State-owned (PFC) on Thursday completed the acquisition of majority stake in REC Ltd by transferring 14,500 crore to the government, an said.

The transaction has helped the government meet its disinvestment target of 80,000 crore for the current financial year.

"The entire consideration of 14,500 crore for acquiring 52.63 per cent equity of the Government of in REC is paid by through RTGS (real-time gross settlement) mode this morning," the told

The said handed over the RTGS advice to A K Bhalla on Thursday to complete the acquisition.

The money has been transferred into the government's

The official further said the government's 52.63 per cent equity in REC would be transferred in the name of the by the closing of the stock market on Thursday.

PFC has raised money from Bank of Baroda, and State Bank of India, among others, to make the payment.

Earlier on March 20, PFC had inked a share purchase agreement to acquire 103.94 crore equity shares of Rs 10 each of REC Ltd.

This deal was in pursuance to the in-principle approval from the for strategic sale of 52.63 per cent of paid-up equity shareholding of REC held by the government to PFC, along with the transfer of management control.

Both PFC and REC are navratna central public sector enterprises with a combined annual revenue of about Rs 50,000 crore and this acquisition is a step towards consolidation of operating in the same space.

PFC bought REC shares at Rs 139.50 per piece with total acquisition cost of about Rs 14,500 crore.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, March 28 2019. 14:05 IST
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