City of London to vote for listing of Property Fund in Warsaw and London

Property Fund (FP) will receive full support for a secondary listing on the Warsaw Stock Exchange from City of London Investment Management Limited, which holds a 8.5 percent stake in FP. Voting on this resolution will be made on April 4, during the next shareholders meeting.

City of London says a secondary listing will increase demand for FP shares and reduce the discount to NAV of 48.2 percent. The shareholder says a secondary listing on the London Stock Exchange would expose FP to a large pool of international investors. Also, London hosts brokers and institutional investors specialized in closed end funds, similar to FP.

FP plans to sell stakes in suppliers and distributors of power and gas representing 15 percent of the net asset value (NAV), amounting to EUR 527.6 million. Citigroup has been assigned as intermediary for potential asset sales.

City of London supports this move and says distributions to shareholders of FP would not exceed 25 percent of NAV, which stood at EUR 3.48 at end-January. However, the shareholder opposes excessive distributions of dividends which would dent FP’s role in developing Romania’s capital market.

Ovidiu Posirca

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