In 2015, Fondul Proprietatea estimates a net profit of 487 million lei (EUR109.3 million), halved compared with this year’s estimates. For 2014, the fund’s profit was revised upwards by 80% to RON956.8 million.
The company also estimates its revenue would fall 13% next year to RON598.3 million, compared with RON688.35 million estimated for this year.
The fund’s shareholders also approved the fifth share repurchase program as soon as the shares bought under the fourth program are cancelled and the Financial Supervisory Authority endorses the operation.
The program will target maximum 227.57 million shares, the company said.
Fondul Proprietatea plans to buy back up to 1.83% of its share capital through the fifth share repurchase program, at a price range of RON0.2 to RON2 a share.
The fund’s fourth buyback program started on October 1 and was scheduled to be completed on November 27, 2015. Fondul Proprietatea plans to buy back up to 7.97% of its share capital through the fourth share repurchase program, at a price range of RON0.2 to RON2 a share.
Early November, Fondul Proprietatea announced that it will pay RON1.11 for a share in a public tender offer to buy back 750 million shares, namely 18.7% higher than the closing price of RON0.9350 per share on Bucharest Stock Exchange, valuing the operation at RON832.5 million (EUR188.3 million).
The 750 million shares represent 6% of the total number of Fondul Proprietatea shares. The public tender offer is scheduled to take place between November 3 and December 2.
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%.
At around 1:25 pm Wednesday, Fondul Proprietatea’s shares traded flat at RON0.9395 in Bucharest. (EUR1=RON4.4407)