Fondul Proprietatea’s manager, Greg Konieczny, made the announcement at a shareholder meeting earlier today, the people told Mediafax.
The fund’s shareholders extended until June 30, 2013 an authorization issued to manager Franklin Templeton Investment Management Ltd. UK to ready the fund’s listing in Warsaw. The initial authorization would have expired at the end of 2012.
Fondul Proprietatea had hoped to list its shares on the Warsaw Stock Exchange, or WSE, by the end of 2012, pending a successful connection between the Polish and Romanian securities depositary systems.
Franklin Templeton Investment Management, sole administrator of Fondul Proprietatea, selected a consortium formed of J.P. Morgan, UniCredit Group and KBC Securities to assist with the public offering, whose costs are estimated at around 10.7 million lei (EUR2.4 million).
Fondul Proprietatea was set up in 2005 to compensate Romanians whose properties were seized during communism.
Foreign investors held 59.25% of the fund’s shares at the end of October, while residents had 38.95%. Fondul Proprietatea owns 1.79% of its own shares due for cancellation.
The fund expects its net profit will rise 29% to RON570.48 million in 2013, according to its revenue and expenditure budget for next year. Revenues are forecast at RON660.3 million, while costs are seen at RON76 million.
Thursday, Fondul Proprietatea closed up 0.19% at RON0.534 a share in Bucharest. (EUR1=RON4.536)