Acasă » General Interest » Fondul Proprietatea: USD 3.7 bln. distributed to shareholders between 2010 – 2020

Fondul Proprietatea: USD 3.7 bln. distributed to shareholders between 2010 – 2020

25 January 2021
General Interest

Fondul Proprietatea celebrates the tenth anniversary of its listing on the Bucharest Stock Exchange (BVB). The decade marks a period in which Fondul Proprietatea has contributed enormously to the development of the Romanian capital market, improving continuously the corporate governance standards in SOEs and making constant efforts to create value for its shareholders.

Under the stewardship of Franklin Templeton, Fondul Proprietatea has been widely recognised for being an activist shareholder, upholding minority shareholders rights, pushing for corporate goverance in SOEs in spite of resistance, taking public stands against unreasonable and anti-competitive business measures, as well as for introducing new instruments on the capital market.

“I strongly commend the commitment, dedication, and resourcefulness of the Franklin Templeton team in Bucharest, who have navigated numerous challenges with resilience and determination. The push for positive changes across the Fund’s portfolio companies has unlocked significant value over the past decade. It has been a rewarding journey, in which the team has innovated, opened new avenues, and helped contribute meaningfully to the progress of the local capital market. We thank all our partners for their outstanding collaboration and support over the years. We look at the future with excitement, optimism and achieving continued success in Romania,” said Johan Meyer, CEO of Franklin Templeton Investments Romania and Portfolio Manager of Fondul Proprietatea.

Since its listing, the Fund gave a continuous boost to the Romanian capital market and contributed significantly to its development:

  • FP ranked 1st among most traded stocks on BVB and was the 5th largest listed company on BVB, representing almost 7% of total market capitalization between 2011-2020.
  • it attracted over US$1.8 billion of new foreign portfolio investments into Romania and significantly increased its visibility among international investors with USD billions in AUM by organizing 22 Investor Day conferences in Romania, London and New York, attending 115 road-shows and 131 investor conferences.
  • it introduced for the very first-time new tools on the local stock exchange: buy-back programmes (2011), tender offers (2013) and accelerated bookbuild offerings/ ABO (2013), which later become popular among local issuers. It also proposed the first stock-option programme in a majority state owned company (2014) at Transelectrica, then part of the Fund’s portfolio.
  • it concluded half of the special transactions (such as IPOs, SPOs, and ABOs) executed on BVB between 2012 – 2020. The Fund’s transactions which represented 40% (US$1.1 billion) of the total value of these transactions, included: Transgaz ABO (2013), Transelectrica ABO (2014), Romgaz ABO (2014, 2015, 2016), Petrom ABO (2013, 2016, 2017, 2020) and ABO Conpet (2014).
  • FP value transactions represented 25.2% of the total equities value transactions on BVB between 2011 – 2020.
  • FP traded volume represented 35% of the total equities volume on BVB between 2011 – 2020.

Delivering on its key objective, FP has built an impressive track record of generating substantial value for its shareholders since its listing:

  • it achieved an all-time high share price of RON 1.53 per share and record low discount to NAV per share of 5%
  • it has generated total shareholders return of over 350% in RON terms and 128% for the GDRs, while the cumulative NAV performance was 141.7% .
  • It made significant distributions of US$3.7 billion (RON 13,8 billion) to shareholders between 2010 – 2020
  • It completed eleven buy-back programs and currently carrying on the twelfth one, repurchasing overall 7.37 billion own shares, representing 53.5% of the total number of issued shares as of the end of January 2011.

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