Romanian Fondul Proprietatea puts public buyback offer on hold

Romanian investment fund Fondul Proprietatea called off yesterday the public offer for buying back its own shares, due to the “recent major adjustments in stock market prices.” The fund planned to repurchase 430 million shares via public offer. The shares were worth about EUR 69 million at the moment Fondul Proprietatea announced its intention (on January 14). “This decision is driven by the significant increase in global financial markets’ volatility which unfolded since the Tender Offer application was filed,” reads a fund’s press release. Fondul Proprietatea also said it was ready to start this process when the market conditions become more favorable. “Given the volatile market conditions, it’s very important to be prudent in managing the cash and limit the fund’s indebtedness rate,” said Greg Konieczny, Fondul Proprietatea manager. The fund will continue to buy back shares directly from the market. Yesterday, the fund’s shares went down by 2.4%. editor@romania-insider.com