Fondul Proprietatea, the biggest investment fund in Romania, sold its whole stake in local gas producer Romgaz for EUR 121.8 million, the fund’s manager announced on Thursday, April 21.

The fund sold 22.5 million Romgaz shares, representing an ownership of 5.85% in the company, through an accelerated book build offering managed by Goldman Sachs, Czech brokerage firm Wood, and local BCR.

Fondul Proprietatea took RON 24 for each Romgaz share, the price being some 7.9% lower compared to the level at which the gas producer’s shares traded before the fund announced its intention to sell.

The fund, which is managed by American group Franklin Templeton, will use the proceeds from the Romgaz sale to continue its share buyback and cash distribution programs aimed at reducing the discount at which the fund’s shares are currently trading on the Bucharest Stock Exchange and London Stock Exchange.

Fondul Proprietatea’s shares have lost 6% of their value since the beginning of this year and are currently trading at a discount of 31% to the net asset value (NAV) per share. The fund had net assets worth EUR 2.56 billion at the end of March while its current market value stands at EUR 1.86 billion.

Fondul Proprietatea received a 15% stake in state-controlled gas producer Romgaz when it was established, in 2006. The fund sold its entire stake after three successive private placements on the Bucharest Stock Exchange and the London Stock Exchange. The previous transactions were in July 2014 and October 2015.

The fund got a total of EUR 372 million from selling its stake in Romgaz. It also disposed of its holdings in electricity transporter Transelectrica and gas transporter Transgaz.

Fondul Proprietatea still holds a 19% stake in OMV Petrom, the biggest oil and gas company in Romania, which is currently valued at some EUR 560 million. However, most of its portfolio is still made of stakes in unlisted state companies, the biggest of which is the 20% share in electricity producer Hidroelectrica.

No deal between Romania’s Electrica and Fondul Proprietatea over subsidiaries

Andrei Chirileasa, andrei@romania-insider.com