The share capital decrease is effective as of today, the fund said in a statement.
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 a 17% stake, followed by US bank Morgan Stanley with 5%.
Since its listing in Bucharest in 2011, Fondul Proprietatea has completed two shares repurchase programs, during which it has bought back 1.74% and 8.2% of its own shares, respectively.
The fund plans to launch a third program later this year, in a move to buy back up to 252.8 million of its own shares at a price range of RON0.2 to RON1.5 a share.
Monday, Fondul Proprietatea closed down 0.12% at RON0.814 a share, valuing the company at RON11.2 billion. (EUR1=RON4.5101)