Romanian investment fund Fondul Proprietatea will reduce its share capital by over EUR 134.8 million, to EUR 1.9 billion, by cancelling some 712 million own shares acquired through the sixth repurchase program.
The decision was made yesterday by the fund’s Extraordinary General Shareholders Meeting. The capital will now be divided into 10 billion shares with a nominal share of RON 0.85 per share, according to Fondul Proprietatea.
Fund manager Franklin Templeton also got the shareholders’ approval for another share buyback program targeting 10% of the fund’s own shares and global depository receipts (GDRs). The repurchase will be carried out at a price that can’t be lower than RON 0.2 per share or higher than RON 2 per share.
Fondul Proprietatea’s shares were trading at RON 0.804 yesterday. In recent years, the fund’s main strategy has been to sell assets and use the money for buying back its own shares.