New Delhi, June 29: REC Limited, a Maharatna company under the administrative control of the Ministry of Power, will merge with Power Finance Corporation (PFC) Limited, also an entity under he Ministry of Power, to create a financing entity with an aggregate loan book of over INR 11 lakh crore.
The Board of Directors of both the companies have approved the Scheme for merger of REC into PFC and their respective shareholders and creditors, under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013, according to an official announcement.
“The Scheme is conditional upon and subject to, inter-alia receipt of all requisite approvals and consents required under applicable law including, approvals from the respective shareholders and creditors of both the companies, and all relevant regulatory and governmental authorities; and the Merged Entity continuing to qualify as a ‘Government Company’ under the Companies Act, 2013 and the Government of India continuing to retain majority voting rights and control in the merged entity (directly or indirectly),” said a statement by REC.
Pursuant to the Scheme and valuation report, the Share Exchange Ratio for the Proposed Merger of REC into PFC shall be 88 equity shares of PFC of INR 10/- each fully paid up for every 100 equity shares of REC of INR 10/- each fully paid up to be issued to the shareholders of REC as existing on a record date to be determined by the Boards of PFC and REC (as may be applicable) at a future date. (BVI)
