PFC board okays purchase of government's stake in REC

New Delhi: Power Finance Corporation Thursday said the board of directors has approved the strategic sale of government's stake in Rural Electrification Corporation to the state-owned financial institution.

"Board of Directors of Power Finance Corporation Ltd in its meeting held today i e 20th December, 2018 has approved following in regard to strategic sale of Government of India Equity Shareholding in REC Limited to Power Finance Corporation (PFC)," the financial firm said in a BSE filing.

The board has granted in-principle approval, pursuant to the decision of the cabinet committee on Economic Affairs (CCEA) regarding purchase of government's entire shareholding in REC along with transfer of management control, PFC said in the filing.

The CCEA earlier on December 6 had approved the sale of government's 52.63 percent stake in REC Ltd to Power Finance Corporation (PFC).

The government is expected to garner around Rs 15,000 crore from this sale process.

The government held 57.99 percent stake in REC, and 65.64 percent in PFC at September-end.

The government holding in REC has come down to 52.63 percent following stake sale through exchange traded funds (ETFs).