Deal:

1. With the aim of consolidating public sector undertakings, Govt of India proposed the
integration of PFC & REC.
2. On 5th Dec 2018 PFC acquired 52.63% stake in REC along with management control around
INR 140 billion.
3. Approval from Cabinet Committee on Economic Affairs received on 6th Dec 2018.
4. The acquisition was aimed at achieving the integration of two power financing business,
plan to consolidate large govt owned companies on common factors and functions.
5. The deal was expected to allow PFC to leverage REC wide geographic presence. It was also
expected that it will enable the two companies to raise funds at better rates internationally.
6. The deal was also expected to create public value with increased efficiencies in lending
processes.
7. The combine entity was expected to have a bottom line of around INR 100 billion and grow
by two times.
8. PFC signed a share purchase agreement to acquire 1.0394 billion equity shares of REC. The
acquisition price was finalized at INR 139.5 per share.