The deal comes at a time when Fondul Proprietatea is one of the hottest stocks on the market, having gained over 30% because of non-residents buying it since the beginning of the year.
The exit of the govenrment from among its shareholders made foreign investment funds enthusiastic about buying Fondul Proprietatea shares at a more than 50% discount on the bourse. Even though the fund’s assets amount to EUR3.6 billion and it owns stakes in Romania’s top energy companies, it is traded at half its asset value on the stock market.
Foreign funds are thus gaining access to strategic companies for the country’s economy, such as Hidroelectrica, Nuclearelectrica and Romgaz, in which Fondul Proprietatea owns minority stakes. The foreign funds to have taken advantage of its low price on the stock market include Elliott, which now owns 12% in it and City of London (7.2%).
The deal on Friday might mean a new fund has just bought into Fondul Proprietatea, considering mostly foreign investors have been buying it.
Brokers say that the price at which the deal was closed, RON0.5585/share during the first few hours of the trading session on Friday, which was the same as the closing price on Thursday, might show who is behind the deal. The RON0.5585 is the market price without any premium added, even though a 2.59% stake changed hands. The deal might actually be a delivery of stocks used as underlying asset for a warrant.
There are also clues that point to Georgia Palade van Dusen, the largest private Fondul Proprietatea shareholder, who owns 5.4%. She is the granddaughter of former interwar industrialist Nicolae Malaxa and has been selling her shares constantly this year. She sold 156 million shares in the first quarter and got an estimated RON82.2 million. If Georgia Palade van Dusen did sell, the fund will most likely issue a report over the next few days stating she now owns less than 5%.
Fondul Proprietatea shares ended the trading session on Friday down 0.27% to RON0.557, which puts the market capitalization of the fund to EUR1.7 billion.
(English version by Loredana Fratila-Cristescu)