PFC plans to take over REC by March 31

The Power Finance Corporation (PFC) on Monday said that it plans to acquire government's shareholding and management control of Rural Electrification Corporation (REC) by March 31, 2019. In December 2018, the central government had given an "in principle" approval for the strategic sale of its shareholding in REC Ltd to PFC along with the transfer of management control.

The company, in a press conference here, said that it has received all regulatory approvals required for the deal and that the transaction price has not been finalised as yet. "DIPAM (Department of Investment and Public Asset Management) has already appointed a valuer for valuation of REC Ltd. Further, PFC is also independently getting the valuations of REC done," the company said in a statement.

"Based on the valuations arrived, the pricing will be mutually decided by GoI and PFC." The company also said that it is not considering to extend an open offer to minority stakeholders.

"Regarding the funding part, PFC is planning to fund it through debt from the market and or payments received on loan assets from borrowers including interest," the statement said. "With regard to the funds required through debt from the market, PFC is already in discussion with lenders and it sees no issues whatsoever on this front, going forward."