Proprietatea Fund to launch one of the biggest share repurchase deals

Newsroom 27/01/2017 | 12:26

Proprietatea Fund is to launch one of the biggest repurchase deals, of up to 640 million shares, and hired Wood&Company Financial Services to carry out the procedure.

Franklin Templeton Investment Management, Proprietatea Fund administrator wants to launch a public offer to repurchase up to 640 million own shares and submitted to this purpose a request to the Financial Supervisory Authority. Given that the costs of a share of the Fund on the Bucharest Stock Exchange (BVB) is of around RON 0.8, the total value of the offer would exceed RON 500 million (EUR 100 million).

This is the seventh repurchase program approved by the Extraordinary General Meeting of Shareholders of the Fund in October 2015. Franklin Templeton hired Wood&Company Financial Services as intermediary for the purchase of shares. The Fund’s administrator is also planning to name Goldman Sachs International and WOOD&Company Financial Services as deal managers and The Bank of New York Mellon as tender agent for the purchase of global depositary receipts (GDR).

The details surrounding the offer, including the price, will be announced when the offer will be implemented and approved by the ASF, which is expected to be issued within 10 days, according to regulations currently in place, the Fund’s representatives said in a press release.

Given this development, the Fund wants to report, as well, that the execution of the repurchase program in what regards the shares listed on the Bucharest Stock Exchange and the GDR listed on the London Stock Exchange was suspended starting 23 January 2017; Any possible resumption, should the offer be launched, will take place after the closing of the offer to purchase, and will be announced in due time,” the Fund said in a press release.

Proprietatea Fund has a market capitalization of RON 9.31 billion, at the debut of the Friday BVB session, the price per share was 0.8 percent, up by 0.58 percent.

Georgeta Gheorghe

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