Franklin Templeton International Services S.À R.L., in its capacity as alternative investment Fund Manager and sole director (the “Fund Manager”) of Fondul Proprietatea S.A. (the “Fund”) celebrates eleven years since the listing of the Fund on the Bucharest Stock Exchange on January 25, 2011. During this period, it has significantly contributed to the development of the local capital market through improvements in corporate governance, management and transparency the corporate governance standards in SOEs and constantly creating value for its shareholders.
Ilinca von Derenthall, Chairperson of the Board of Nominees said: “Fondul Proprietatea has continuously supported the development of the Romanian capital market and the implementation of Corporate Governance best practices at portfolio companies’ level. There is still a lot to do, and the only way towards progress is to list new companies on the stock exchange. We are strongly advocating for these IPO’S and in Hidroelectrica and Salrom we have two prominent companies ready to start the listing process. We intend to take advantage of the strong momentum on the local capital market and to work for the benefit of all stakeholders. With the listing of these two companies, Romania is taking an important step towards being promoted to the emerging market status by MSCI, which will allow for new fund inflows on the Bucharest Stock Exchange.”
On this occasion, Johan Meyer, CEO of Franklin Templeton Bucharest Branch and portfolio manager of Fondul Proprietatea said: “Over the 11 years since the listing, Fondul Proprietatea has made a significant contribution to the development of its portfolio companies through close involvement in the implementation of corporate governance standards and advocating for improved transparency. The resultant improvement in financial performance has directly translated to value creation for the Funds’ investors. We are prepared to support the listing of state-owned companies in the near future, as we believe this to be great opportunity to encourage more investment in Romania and to unlock value for shareholders. Companies such as Hidroelectrica and Salrom are well positioned to be major beneficiaries of being listed and will put Romania on the radar screen of investors across the globe.”
Last year Fondul Proprietatea received approval in principle from the Ministry of Economy to list its stake in Salrom on the Bucharest Stock Exchange, and this year the Fund wants to obtain the necessary approvals from the Ministry of Energy for the listing of Hidroelectrica.
The most significant achievements in the 11-years period since the listing of the Fund on the BVB:
- The share price reached a historical maximum of RON 2.22 per share on January 17, 2022, more than double RON 1,00 per share, which was the nominal value of the share at the creation of the Fund, thus strengthening the constant performance over the last 11 years.
- Since Franklin Templeton took over the management of Fondul Proprietatea in September 2010, the Fund has made gross cash distributions of RON 7.2 billion (USD 2.1 billion) to shareholders and completed 12 buy-back programs, worth over RON 7.3 billion.
- Fondul Proprietatea completed around half of the special transactions (such as IPOs, SPO, and ABOs) executed on BVB between 2012 and 2021. The most important transactions concluded by the Fund include: Transgaz ABO (2013), Transelectrica ABO (2014), Conpet ABO (2014), Romgaz ABOs (2014, 2015, 2016), and Petrom ABOs (2013, 2016, 2017, 2020, 2022).
- The volume of Fondul Proprietatea shares traded on BVB represents 33% of the total volume of equities traded on BVB between 2011 – 2021.
- FP ranked 1st place among the most traded issuers on BVB during the 11-year period, with an average trading value of RON 9.9 mn, and was the 5th largest listed Romanian company on the BVB, representing almost 6% of the total market capitalization as at the end of 2021.