In the first half, investment fund Fondul Proprietatea (FP.RO) boosted its stakes in aluminum producer Alro Slatina (ALR.RO) to 10.02%, from 9.92% at the end of 2010, and in chemical fertilizer plant Azomures (AZO.RO), where it holds 10.7% in stock, according to the half-year report.
The fund raised its stake in BRD-Groupe Societe Generale (BRD.RO), the second largest bank in Romania, and added three new companies to its portfolio: Erste Group Bank and Raiffeisen Bank International–after buying stakes in the Austrian banks on Vienna stock exchange–, and Banca Transilvania, the largest Romanian-held bank listed in Bucharest.
In the second quarter, FP raised its stake in Erste to 0.32% from 0.25% on March 31, while in Raiffeisen it held 0.55%, up from 0.43%. The fund also increased its exposure to BRD, where it has come to own 2.24% from 1.69%. In the second quarter, Proprietatea bought 0.12% in Banca Transilvania.
For these purchases, the team of managers, which includes Mark Mobius, used cash from banking deposits, which fell from 1.071 billion lei (December 2010) to RON673 million (June 30, 2011).
Proprietatea entirely sold stakes in Marlin, Familial Restaurant and Laromet through public offerings, as well as part of stakes held in Vitacom SA and Oil Terminal (OIL.RO) through the stock exchange.
The fund posted net income of RON593.7 million in the first half, more than double the figure reported in the first half of last year. In the first half, Fondul Proprietatea’s wealth increased by 5.5% to RON16.17 billion (EUR3.8 billion). (EUR1=RON4.2784)