The stake ceded is evaluated at some 648 million lei (EUR164 million) on the Bucharest Stock Exchange.
Following the conversion operations unfolded last week, the Finance Ministry’s stake in the Proprietatea fund narrowed to 24.54%. Under the fund’s statute, the state retains decision-making attributes as long as its stake is greater than 33%.
Since the state’s stake shrank to less than 33%, Franklin Templeton can propose the change of shareholder voting method, as announced by Proprietatea manager Greg Konieczny in January.
As long as the state held more than 33% in the fund, the Finance Ministry was able to vote with all shares in the portfolio, but the policy was different for the other stockholders.
Thus, shareholders owning less than 1% get one vote for each share. Shareholders owning between 1% and 3% get one vote for every two shares. For stakes between 3% and 5%, the holder gets one vote for every three shares.
If a holder owns more than 5% on the fund, there are no votes granted for the difference between their stake and 5%.
Proprietatea shares closed up 0.21% Tuesday, to RON0.486. (EUR1=RON4.1208)