Franklin Templeton selected a consortium comprising Jefferies International Limited, BRD Societe Generale, Swiss Capital and Clifford Chance Badea to help with the cross listing.
“The listing on the LSE should broaden the foreign institutional investor base not currently active in Romania, which should benefit the fund as well as other Romanian companies including the companies in the fund’s portfolio,” the fund manager said in a statement.
It said fungible trading between London and Bucharest is expected to be achieved via the use of Depositary Interests in the United Kingdom.
Alternatively, the cross listing could be achieved via the use of Global Depository Receipts (GDRs), but the current local regulations in Romania limit the issuance of GDRs to initial public offerings, Franklin Templeton said.
Franklin Templeton’s proposal regarding the secondary listing of Fondul Proprietatea will be voted at a shareholder meeting due April 28.
The fund manager initially considered Warsaw for a secondary listing of the fund’s shares, but it had to dismiss its plans because of regulatory impediments.
Fondul Proprietatea was set up in 2005 to compensate Romanians whose properties were seized during communism. The fund was listed in Bucharest in January 2011.