Cyril Amarchand Mangaldas has acted as the transaction counsels for merger by absorption of REC Limited (REC) into Power Finance Corporation Limited (PFC) and the consequent dissolution of REC without being wound up and on a going concern basis (proposed merger) and advised both PFC and REC.
Pursuant to the scheme and valuation reports, the share exchange ratio for proposed merger 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.
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The proposed merger shall create a financing entity with an aggregate loan book of over INR 11 lakh crore, and the combined entity is valued at approx. INR 2.42 lakh crores.
CAM’s deal team was led by partner (head – banking) Amey Pathak, partner Dhruv Singhal, with assistance from senior associates Deval Dangayach, Hina Tolani and associates Divisha Sharma, Shivi Chola and Rituraj Parmar.
Partner Pururaj Bhar with assistance from principal associate Apoorv Jain and associate Utkarshini Anand advised on banking and finance aspects.
Partner Shikha Tandon with assistance from principal associate Zaid Drabu advised on disputes aspects of the transaction. Partner Gazal Rawal, with support from senior regulatory advisors Mrs. Lily Vadera and Mr. S. Ganesh Kumar; senior associate Havish Gotecha and associate Aniket Panchal advised on the RBI related regulatory aspects of the transaction.
