PFC acquires govt stake in REC for Rs 14,500 crore

Board approved the acquisition at a cash purchase consideration of Rs 139.50 per share

State-owned Power Finance Corporation (PFC) on Friday announced the acquisition of the Centre’s 52.63 per cent paid-up share capital in Rural Electrification Corporation (REC). The board of directors approved the acquisition cost of about Rs 14,500 crore.

PFC is the power sector’s leading financier with exposure in power generation, transmission and clean energy projects. REC is also a financing agency mostly for the government’s key energy schemes, the recent being the ambitious Saubhagya project for 100 per cent household electrification. REC also lends to state-owned power distribution companies.

“PFC has today signed a Share Purchase Agreement