Romania's Fondul Proprietatea to buy EUR 100 mln of its own stock to raise share price

Investment fund Fondul Proprietatea has announced its plan to buy 600 million of its own shares or around 4.3 percent of its share capital. The fund plans to pay some EUR 98 million for the shares, with the aim to increase the price of its own shares. The news sent the price of shares to a maximum on Wednesday, September 25, of RON 0.74 per share. Romanian investment fund Fondul Proprietatea recorded a net profit of some EUR 117 million (RON 514 million) in the first half of 2013, a year-on-year decrease of some 10 percent, while its revenues from current activity went up 3 percent, to around EUR 222 million (RON 874 million). Fondul Proprietatea’s revenues from financial assets went down to EUR 137 million (RON 604 million), and “represent dividend income earned from the Fund’s portfolio companies, mainly from OMV Petrom - RON 319 million, Romgaz - RON 158.9 million and Transgaz - RON 37.6 million,” reads the fund’s report. As of June 30, Fondul Proprietatea’s portfolio included holdings in 66 companies, 24 listed and 42 unlisted. The fund’s portfolio is focused on the power, oil and gas sectors – around 89.5 percent of its net assets. The biggest unlisted company in its portfolio is Hidroelectrica, while the biggest listed company where Fondul Proprietatea owns shares is OMV Petrom. On June 30, 2013, Fondul Proprietatea had 8,228 shareholders. Fondul Proprietatea, currently managed by Franklin Templeton, was established by the Romanian Government in 2005 and eligible claimants who lost property under former communist governments were awarded shares in the Fund in lieu of compensation. editor@romania-insider.com