PFC, REC Boards Approve Merger Scheme to Create Rs 11 Lakh Crore Infra Financing Giant

New Delhi, Jun 30 (KNN) The boards of Power Finance Corporation (PFC) and REC Ltd have approved a merger scheme under which REC will be merged into PFC, creating a financing entity with an aggregate loan book of more than Rs 11 lakh crore.

The proposed merger will be implemented under Sections 230 to 232 of the Companies Act, 2013, subject to approvals from shareholders, creditors and the relevant regulatory and government authorities. 

The scheme is also conditional on the merged entity continuing to qualify as a government company, with the Government of India retaining majority ownership and control.

Under the approved valuation, REC shareholders will receive 88 equity shares of PFC for every 100 equity shares of REC they hold. The share exchange will be based on a record date to be determined by the boards of the two companies at a later stage.

According to the companies, the merger scheme will take effect after all statutory and regulatory approvals have been obtained.

(KNN Bureau)