Controversial capital increase at Bucharest Airports suspended by Court

The Bucharest Court of Appeal on January 13 admitted Fondul Proprietatea’s request and ordered the suspension of the effects of the capital increase promoted by the Government at Bucharest Airports company, Fondul Proprietatea announced in a note to investors.

The effects are suspended until the claim for the annulment of the capital increase is irrevocably settled.

The shareholders, more specifically the Romanian Government as a majority shareholder, approved a capital increase from RON 144 mln to RON 4.9 bln, as a result of the in-kind contribution of the Romanian State with the land used by Băneasa Airport.

Franklin Templeton, the administrator of Fondul Proprietatea, had challenged the current valuation of the land of Băneasa Airport, of RON 3.8 bln, which is 11 times larger than the previous valuation of RON 336 mln.

Fondul Proprietatea warned in September that the controversial capital increase would dilute its stake from 20% to 0.7% through the capitalisation of an overvalued plot of land used by its secondary airport Baneasa.

Fondul Proprietatea should make a contribution of RON 953.7 mln (EUR 190 mln) to preserve its share.

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