The Romanian state, in a document on December 5, expressed its intention to take full control of the National Airports Company of Bucharest (CNAB), which operates Otopeni Airport and Baneasa Airport, where the minority shareholder Fondul Proprietatea has a 20% stake, Ziarul Financiar reported. The announcement pushed up 2.6% the price of FP's shares, as CNAB is the most important asset in the Fund's portfolio.

FP evaluates its 20% participation in CNAB at RON 1 billion (EUR 200 million), while Ziarul Financiar, in its annual report on the largest Romanian companies, sees CNAB's value at RON 4 billion – implying a slightly smaller value of RON 800 million for FP's participation.

At the latest shareholder meeting at CNAB, the state opposed the listing of the company.

The Ministry of Transport, the majority shareholder of CNAB with 80% of the shares, is now proposing to shareholders to approve the repurchase of the 20% stake held by Fondul Proprietatea.

Fondul Proprietatea sent a statement to the Stock Exchange stating that it had not yet been consulted regarding the state's intention to buy its stake.

"The Fund Administrator wishes to inform the Fund's shareholders that it has not been consulted by CNAB regarding a potential transaction of the block of shares held by the Fund at CNAB. The Fund Administrator reminds shareholders that any transaction involving assets of the Fund whose value exceeds, individually or cumulatively, during a financial year, 20% of the total fixed assets of Fondul Proprietatea, is subject to the approval of the Extraordinary General Meeting of Shareholders of the Fund, in accordance with the provisions of the Articles of Association and the legislation in force," reads the reaction of Franklin Templeton, the FP administrator.

iulian@romania-insider.com

(Photo source: Inquam Photos/Octav Ganea)