Fondul Proprietatea shareholders seek independent valuation of Bucharest Airports stake

Several shareholders of Fondul Proprietatea have asked the investment fund to seek an independent valuation of its 20% stake in Bucharest Airports (CNAB), amid plans by the Romanian state to buy out the minority holding, according to a document cited by Bursa.ro. The request is expected to be submitted for discussion at Fondul Proprietatea’s shareholders’ meeting scheduled for February 26.

The Romanian state owns the remaining 80% of CNAB and has expressed interest in acquiring the fund’s stake, while Fondul Proprietatea has repeatedly supported the option of listing the airport operator on the Bucharest Stock Exchange.

In their submission, the shareholders criticised the valuation applied by the state, which lowered CNAB’s assessed value from RON 2 billion to RON 1.37 billion (EUR 400 million to about EUR 274 million), citing discounts for lack of control and lack of liquidity. The shareholders argue these discounts are not justified in the context of a sale to the state.

“In the case of the sale of Fondul Proprietatea’s stake to the state, the state becomes the sole shareholder, so the discount for lack of control no longer applies,” the shareholders said.

They also questioned the relevance of a liquidity discount, noting that “the state has repeatedly rejected the listing of CNAB”.

The letter also refers to statements made by Franklin Templeton, the manager of Fondul Proprietatea, during the presentation of the fund’s preliminary financial report.

According to the shareholders, the manager stated that existing valuations were prepared solely for financial reporting purposes and that any transaction would require a separate valuation tailored specifically to the sale, incorporating information that emerged after the reporting date.

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