Fondul Proprietatea proposes EUR 500 mln IPO at Bucharest Airports to finance new terminal

Fondul Proprietatea (FP), as a minority shareholder (20%) at Bucharest Airports Company (CAB), proposed that the company could issue, under an IPO at Bucharest Exchange (BVB), a number of shares equal to half of its current shares, to finance the construction of a new terminal. The operation would preserve the state's majority position and generate an estimated EUR 500 million for the company to use for investments, FP argued.

Fondul Proprietatea reconfirmed on November 24 its support for the company's listing on the BVB, considering that it would be an important moment for the development of the Romanian capital market and an opportunity for the development of the airport infrastructure in the capital area, Ziarul Financiar reported.

In the opinion of Franklin Templeton International Services, Sole Administrator of FP, a listing of CNAB could constitute an important source of financing for the construction of a new terminal at Henri Coandă International Airport, which Romania urgently needs.

To achieve this goal, Fondul Proprietatea draws attention to the fact that it is necessary to strengthen the corporate governance of CNAB, as well as to prepare immediate preliminary steps, such as hiring a financial auditor with prior experience in capital market transactions.

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