Court rejects Fondul Proprietatea's request to cancel Romgaz donation to Romanian state

Fondul Proprietatea, a minority shareholder in state – owned gas company Romgaz has lost the appeal in the case of the EUR 95 million donation to the Romanian state, according to Mediafax newswire, quoting official sources. The decision came from the Alba Iulia Court of Appeal, according to the newswire. Romgaz, one of Romania’s most valuable companies, was on the list of firms which had posted a profit in 2009 and was chosen to donate some of their previous profits to the Romanian state, which was trying to increase its budget revenues. Romgaz and Electrica had to donate RON 400 million (around EUR 94 million), while the Romanian Lottery, some RON 74 million (around EUR 17.2 million). Fondul Proprietatea had publicly opposed the donation. “We are extremely disappointed that, despite our proposal for an alternative solution, this unfortunate measure was implemented. We would like to ensure our shareholders we are making efforts to recover the amount, using all possible legal ways,” said Greg Konieczny, fund manager with Fondul Proprietatea, earlier in the process. Fondul Proprietatea, managed by Franklin Templeton, is listed on the Bucharest Stock Exchange. Franklin Templeton asked for the cancellation of Romgaz' shareholders decision to make the donation. The Sibiu Court rejected the request in January this year. editor@romania-insider.com