Fondul Proprietatea summons shareholders for dividend distribution, capital reduction

Franklin Templeton International Services, still the alternative investment fund manager and sole director of Fondul Proprietatea, summoned FP’s shareholders on April 25 to distribute dividends and reduce the capital following the share buyback schemes.

The dividends disbursed, some RON 340 million (EUR 68 million), would result in a yield of nearly 12%, Ziarul Financiar reported.

However, the dividend distribution is conditioned by the approval of covering the 2022 loss (some RON 900 million) from the profit derived in 2023 (nearly RON 2.8 billion).

Separately, the shareholders are invited to approve the reduction of FP’s share capital from RON 2.9 billion to RON 1.8 billion by canceling 2.1 billion of its shares acquired by the Fund during 2023 through the buyback schemes.

Franklin Templeton assured that it remains committed to using whatever cash available to pursue its mission set out in the Fund’s Investment Policy Statement, such as by funding the buyback programme and/or by proposing the payment of potential dividends to the Fund’s shareholders (subject to market conditions and any restrictions under Romanian legal or tax regulations and to required shareholders’ approval).

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