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September 29, 2022

Fondul Proprietatea celebrates 10 years since its listing on BVB

The Bucharest Stock Exchange and Fondul Proprietatea manager Franklin Templeton organized a press conference on Monday on the occasion of the tenth anniversary of FP’s listing on the Bucharest Stock Exchange.

Launched in December 2005, Fondul Proprietatea was set up in order to compensate the Romanians whose properties were seized by the former communist regime. Following an international bid announced in December 2008, Franklin Templeton Investments officially took over as investment manager and sole administrator of the Fund on September 29, 2010.

The Fund is a closed-end investment company whose investment objective is to maximize returns to shareholders and increase the net asset value per share through investments made mainly in Romanian stocks and securities.

FP has been trading on the Bucharest Stock Exchange since January 25, 2011 and its GDRs were listed on the Specialist Fund Market of the London Stock Exchange on April 29, 2015.

“The decade marks a period in which Fondul Proprietatea has contributed enormously to the development of the Romanian capital market, improving continuously the corporate governance standards in SOEs and making constant efforts to create value for its shareholders,” a press release issued by Fondul Proprietatea manager Franklin Templeton informs.


Fondul Proprietatea: Most traded shares, foreign investments worth 1.8 billion dollars, in last 10 years


The Fondul Proprietatea (FP) ranked first in the top of most traded shares on the Bucharest Stock Exchange (BVB) in the last 10 years since its listing on the local capital market, and attracted over 1.8 billion dollars under the form of new foreign portfolio investments in Romania, according the the above mentioned press release.

According to the quoted source, during the period of 2011-2020, the FP placed 5th in the ranking of largest rated companies on the BVB, which represents almost 7% of the total market capitalization.

Throughout the analyzed period, transactions made by the FP represented 40% (1.1 billion dollars) from the total value of special transactions and included: accelerated private placement of Transgaz (2013), the private accelerated placement of Transelectrica (2014), private accelerated placements of Romgaz (2014, 2015, 2016), private accelerated placements of Petrom (2013, 2016, 2017, 2020) and private accelerated placement of Conpet (2014).

Commenting on this key milestone, Piotr Rymaszewski, Chairman of Board of Nominees of Fondul Proprietatea said: “The Board of Nominees commends the efforts of Franklin Templeton as Fund Manager of Fondul Proprietatea over the past 10 years. The Fund has not only generated excellent returns for its shareholders, but has also, under the professional and diligent stewardship of the Fund Manager, made a significant contribution to the development of the capital market in Romania. The Fund Manager’s efforts to improve corporate governance and transparency at its investee companies have had a very positive effect on the local equity market. The Fund’s Board of Nominees, in cooperation with the Fund Manager, has led the way in this regard and it continues to believe that this unwavering focus will benefit all stakeholders well into the future.”

Commenting on the 10-year anniversary, Manraj Sekhon, Chief Investment Officer, Franklin Templeton Emerging Markets Equity said: “Fondul Proprietatea has proven to be a great success story for Romania, the Fund’s diverse range of partners, and Franklin Templeton as the manager. We greatly value the engagement and support of the Fund’s shareholders, co-shareholders in the portfolio companies, the Bucharest Stock Exchange, the Financial Supervisory Authority, and various other contributors in Romania. Another valuable partner has been the London Stock Exchange, where the Fund had its successful secondary listing. We continue to have great faith in the long-term potential of Romania and are looking forward to further partnership with the new Government to deliver more years of success. Importantly, Fondul also provides a useful model for other countries to help build true long term social and economic sustainability, with the collaboration of many stakeholders.”

Johan Meyer, CEO of Franklin Templeton Investments Romania and Portfolio Manager of Fondul Proprietatea added: “I strongly commend the commitment, dedication, and resourcefulness of the Franklin Templeton team in Bucharest, who have navigated numerous challenges with resilience and determination. The push for positive changes across the Fund’s portfolio companies has unlocked significant value over the past decade. It has been a rewarding journey, in which the team has innovated, opened new avenues, and helped contribute meaningfully to the progress of the local capital market. We thank all our partners for their outstanding collaboration and support over the years. We look at the future with excitement, optimism and achieving continued success in Romania.”


Deputy PM Barna: Romania’s budget, under pressure, must fall within 7 pct deficit agreed with EC


Romania’s budget is under a lot of pressure at the moment, due to the need to fall within that 7 percent deficit agreed with the European Commission, Deputy Prime Minister Dan Barna told on Monday a press conference dedicated to the 10th anniversary of Fondul Proprietatea (FP)’s listing on the local capital market.

“The pandemic crisis has put a lot of pressure on many areas of the economy, and Romania’s budget is under a lot of pressure at the moment due to the need to fall within that 7 percent deficit agreed with the European Commission. And from this perspective, the capital market can be a much-needed tool and partner. I am currently working with my team and colleagues in the Government on the Reconstruction and Resilience Plan that Romania will propose to the European Commission. We are talking about 30 million euros that will be infused into Romania’s capital market. From this perspective, in order to emerge from the crisis when the vaccination campaign has the expected success and we enter into a logic of economic reconstruction, the role of the Bucharest Stock Exchange and the capital market in the broadest sense is one that I see as fundamental,” Barna said.


Badea: Listing of Hidroelectrica does not mean that someone is leaving with the Romanian company


The listing of Hidroelectrica SA can take place, at best, at the end of this year and we must explain to the Romanians that no one leaves with the Romanian company, as it is a method by which each of us can become part through buying shares in the company, Bogdan Badea, general manager of Hidroelectrica told on Monday a press conference dedicated to the tenth anniversary of the listing of Fondul Proprietatea (FP) on the local capital market.

“Listing is the most transparent way to attract capital. We hope in Hidroelectrica’s listing, at best, at the end of this year, if things move along fast and we have enough time to prepare. I would not want say later this spring, because it is an expected listing, which must happen. It is a time that will be crucial for the Romanian capital market, it will provide another liquidity to the capital market and will ultimately give to the Romanians the possibility to choose between the various instruments in which to place their savings. We must explain to Romanians that listing does not mean a sale, it does not mean that someone leaves with the Romanian company and goes elsewhere, but it means openness, transparency and a method by which each of us can become part of Hidroelectrica, through buying shares in the company. It is a Romanian company, it will remain a Romanian company and it will be a high-performing Romanian company,” Badea explained, according to Agerpres.

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Martin Stoebe is the new Country Manager of Beiersdorf Romania, Bulgaria and Moldavia