The proposal was put forth by Fondul Proprietatea’s manager Franklin Templeton Investment Management Ltd UK and approved by its shareholders at a Wednesday meeting.
Franklin Templeton proposed a buy-back price range of RON0.2 to RON1.5 a share.
This will be the second buy-back program unfolded by Fondul Proprietatea, following a similar operation in 2011, through which the fund bought back 1.74% of its shares.
The buy-back program has as object the share capital decrease and would be carried out over a period of 18 months.
“The program execution will be subject to the availability of the necessary cash,” the fund said.
Fondul Proprietatea’s shareholder also ratified and adopted all the decisions of the shareholders’ extraordinary general meetings since Franklin Templeton started its mandate as administrator in 2010. Most of these decisions were challenged in court by one of the fund’s minority holders.
Fondul Proprietatea was set up in 2005 to compensate Romanians whose properties were seized during communism.
The fund has a share capital of RON13.77 billion lei, split into 13.77 billion shares with a face value of RON1.
On April 9, foreign investors held 55.24% of the fund’s shares, while residents had 40.36%.
On the Bucharest bourse Tuesday, Fondul Proprietatea closed up 0.84% at RON0.54 a share. (EUR1=RON4.3791)