The fund has 624.9 million more shares to buy back within the sixth buyback program worth RON454 million, based on the latest market price of RON0.73/share.
According to FP manager, Franklin Templeton, the buyback is the best option for investors at the moment, given the current market conditions. Moreover, the buyback program also targets to reduce the trading discount from 30% to 15%, as requested by Fondul Proprietatea’s largest shareholder, U.S. hedge fund Elliott Associates.
To supply the buyback program, FP liquidated certain assets (in 2015, the fund sold part of its stakes in Romgaz and Primcom and all the stakes in Forsev, SIFI CJ Agro, Electrocostructia Elco Cluj and Petrotel Lukoil).
On September 9, 2015, Fondul Proprietatea started its sixth share buyback program which enables it to purchase nearly 8% of shares. The maximum period for the unfolding of the program expires on November 15, 2016.
In January, the fund suspend the public offer for the purchase of its own shares, citing “recent major price adjustments on the capital market” but resumed it on January 28.