Romania's biggest investment fund to set dissolution deadline

The shareholders of the biggest Romanian investment fund - Fondul Proprietatea (FP) - will be invited to vote for setting 2031 as the Fund's deadline, Profit.ro reported.

The shareholders' vote would naturally follow the strategy of gradually liquidating Fondul Proprietatea's holdings in the last ten years by selling assets from the portfolio and distributing the cash to shareholders.

Fondul Proprietatea has halved its size to EUR 2 billion in the last decade, and keeping this pace would indeed bring the Fund into the position of self-dissolution.

Ovidiu Fer, one of those who brokered the sale of substantial packages to Elliott (one of Fondul Proprietatea's significant shareholders), ran for a position on the Committee of Representatives on a platform promoting an even faster liquidation, but he did not receive the shareholders' vote. He proposed a more active attitude towards selling illiquid holdings.

Fondul Proprietatea sold its easier-to-sell stakes in listed companies such as Transelectrica (TEL), Transgaz (TGN), Romgaz (SNG), or Conpet (COTE), and significantly reduced its holdings in OMV Petrom (SNP).

The Fund now manages a rather illiquid portfolio, which includes stakes in unlisted state-owned companies such as Hidroelectrica, Salrom, and Bucharest Airports, among others.

(Photo: Maximusnd/ Dreamstime)