Power Finance Corporation (PFC)
inked a Share Purchase Agreement to acquire 103.94cr equity shares of Rs10/each, of REC
from the President of India constituting 52.63% of the paid-up share capital of REC Limited.
"The board of directors of PFC considered the transaction and approved the acquisition of the 52.63% shareholding of the President of India in REC, at a cash purchase consideration of Rs139.50/share with total acquisition cost of ~Rs14,500cr," the company said in a press note after markets hours to the exchanges on Wednesday.
The consideration for the transaction is expected to be paid on March 28, 2019 and funds for the same have already been arranged by PFC, the company added.
The acquisition of REC was in pursuance to the in-principle approval dated December 06, 2018, from the Cabinet Committee on Economic Affairs for the strategic sale of 52.63% of the paid up equity shareholding of REC held by the President of India (acting through Ministry of Power, Government of India) to PFC along with transfer of management control, PFC added.
Power Finance Corporation Ltd's share price on Wednesday ended at Rs114, down by Rs6.45 or 5.35%, from its previous close of Rs120.45 on the BSE.
The scrip opened at Rs120.50 and touched a high and low of Rs120.50 and Rs113.50, respectively. A total of, 1,92,76,578 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs30,096.93cr.