The capital decrease entails reducing the value of Fondul Proprietatea’s shares to RON0.95 a share, from RON1 a share presently. The freed-up money will be paid out to Fondul Proprietatea’s shareholders, proportionally with their participation to the paid share capital of the fund.
The decision, which was approved by 93.92% of the votes cast at a shareholder meeting earlier today, is also subject to authorization from the country’s financial supervisory authority ASF.
Fondul Proprietatea was set up in 2005 to compensate Romanians whose properties were seized during communism. U.S. hedging fund Elliott Associates is the fund’s largest shareholder, with an 18% stake.
Friday, Fondul Proprietatea closed up 0.06% to RON0.8155 a share in Bucharest. (EUR1=RON4.4978)