Fondul Proprietatea, the biggest investment fund in Romania, announced it will buy back 1.2 billion shares at a price of RON 0.935 per share. The total value of this transaction amounts to EUR 244 million.

The fund will buy back both shares, which are traded on the Bucharest Stock Exchange, and global depository receipts (GDRs), which are traded in London.

The fund’s buyback offer started on January 18 and ended on February 23. The total subscriptions amounted to 4.85 billion shares, representing over 50% of the fund’s total shares. The fund will thus buy almost a quarter of the total shares subscribed by its shareholders. The transaction takes place today (February 26).

Czech brokerage firm Wood&Company managed this buyback offer.

Fondul Proprietatea will cancel the shares bought back from its shareholders and reduce its share capital. The fund’s strategy in recent years focused on selling the assets in its portfolio and distributing the money to its shareholders via buyback offers and cash distributions.

editor@romania-insider.com