State-owned Power Finance Corporation (PFC) on Thursday completed the acquisition of majority stake in REC Ltd. by transferring Rs 14,500 crore to the government, an official said. The transaction has helped the government meet its disinvestment target of Rs 80,000 crore for the current financial year.
“The entire consideration of Rs 14,500 crore for acquiring 52.63% equity of the Govern-ment of India in REC is paid by PFC through RTGS (real-time gross settlement) mode this morning,” the official told PTI. The official said PFC chairman and managing director Rajeev Sharma handed over the RTGS advice to Power Secretary AK Bhalla on Thursday to complete the acquisition. The money has been transferred into the government’s account online.
The official further said the government’s 52.63% equity in REC would be transferred in the name of the PFC by the closing of the stock market on Thursday. PFC has raised money from Bank of Baroda, Life Insurance Corporation 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.
