Romania wants to stop Fondul Proprietatea from selling large-sized stakes

Romania’s government, a shareholder in Fondul Proprietatea (BVB: FP) with 6.5% of the shares but 10.4% of the voting rights, announced plans to stop the sale of Fund’s large stakes such as that held at Engie Romania, a policy promoted by Fund manager Franklin Templeton for financing cash distribution or shares buy-back schemes, Profit.ro reported.

Enforcing such measures, which are in line with the state’s plans to involve Fondul Proprietatea in the financing of large-sized projects under the Resilience Facility, needs support from other FP shareholders, most likely the pension funds.

So far, the pension funds have been supportive of the Romanian government’s decision to extend a short-term mandate to Franklin Templeton until a more appropriate fund manager is found.

But Franklin Templeton convened, on February 13, the shareholders of FP for the approval of a 1 billion-share buy-back scheme in 2024, for the approval of the sale of the stake in Engie Romania, but also the approval of the sale in 2024 of some stakes in Bucharest Airports, the maritime ports administration, salt company Salrom, and aluminum smelter Alro.

The sale of the 12% holding in Engie Romania has already been signed by Fondul Proprietatea with GDF International for a price of RON 433 million, but it cannot be concluded without approval in the AGEA FP on February 13.

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