Mumbai: State-owned Power Finance Corporation on Wednesday said it will acquire the entire 52.63 per cent shares of the government in REC for Rs 14,500 crore by the month-end, a move that will help the centre to meet its disinvestment target.
Earlier in December 2018, the Cabinet Committee on Economic Affairs had given in-principle approval for acquisition of the public-owned REC by PFC.
As per the proposal PFC will acquire about 104 crore shares or 52.63 per cent of the government stake in the REC at Rs 139.50 per share, the PFC said in a regulatory filing.
It further said the acquisition will be completed by March 31. This means the government will receive the proceeds of the sale within the current fiscal.
Post transaction, PFC's shareholding in REC will be 52.63 per cent.
The filing further said after the transaction, both the companies will continue to remain government owned companies.
"PFC today sealed a deal to acquire 52.63 per cent stake of GoI in REC, as it's bid of Rs 14499.99 crore (@ Rs 139.50 per share) was accepted along with transfer of management control. The proposal for this deal aimed at synergy in power NBFC sector was approved by CCEA on 6.12.18," Secretary DIPAM said in a tweet.
The government proposes to raise Rs 80,000 crore from disinvestment during the fiscal ending March 19 and has so far raised Rs 56,473.32 crore. With completion of PFC-REC deal, the amount will increase to over Rs 70,000 crore.
Scrips of REC closed at Rs 144.85 per cent, down 2.39 per cent on the BSE. Shares of PFC too declined by 5.35 per cent.
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