(PTI)
State-owned Power Finance Corporation (PFC) completed acquisition of majority stake in REC Ltd by transferring Rs 14,500 crore to the government and is hopeful of merger of the two firms in 2019-20.
The transaction assumed significance because it helped the government meet its disinvestment target of Rs 80,000 crore for the current financial year. “We are hopeful about merger of the two firms (PFC and REC) during 2019-20. We have to get directionfrom the government in this regard and then we would appoint consultant for the purpose,” PFC Chairman and Managing Director Rajeev Sharma told reporters in a press conference on the deal.
This stake acquisition was in pursuance to the in-principle approval from the Cabinet Committee on Economic Affairs 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.
