The FP representative said the fund is not willing to invest in a capital hike as it has not been shown a credible business development plan and will continue to contest the capitalization.
In March 2018, Romania’s Communications Ministry decided to raise Posta Romana’s share capital by approximately RON227 million. FP decided not to contribute and contested the decision in court. Following the hike, FP now owns 6.48% in the postal company from a previous stake of 25%, while the ministry raised its stake to 93.52% from a previous 75%.
“For our investors, this would mean throwing money out the window. Certainly, this is a business that could be transformed but it needs management and authorities willing and determined to do that,” Meyer told a news conference.
Fondul Proprietatea reported an unaudited net profit of RON789.8 million in the first half of 2018, compared with RON709.3 million in the same period in 2017.
The Fund said the main contribution to the profit recorded during the first six months of 2018 was the gross dividend income of RON532.6 million and the net gain from equity instruments at fair value through profit and loss amounting to RON293.9 million, mainly generated by OMV Petrom SA, as a result of the positive evolution of the share price for this company during the period (RON195.4 million, share price increase of 12.1% compared to 31 December 2017).