Romania’s Property Fund to sell part of or entire 15% stake in gas transport firm Transgaz

By bne IntelliNews December 5, 2013

Romania’s restitution Property Fund [Fondul Proprietatea] has hired Citigroup Global Markets, Raiffeisen Capital & Investment and Wood & Company to evaluate the option of selling part of or the whole 14.99% stake held at local natural gas transport company Transgaz, news agency Mediafax reported.

The full stake has a market value of RON 336mn [EUR 75.16mn] at December 4 price on the local stock exchange where the company’s shares are traded.

The purpose of the deal would be “increasing the value [of the fund’s shares] and increasing the liquidity of the fund’s assets,” its manager Franklin Templeton explained in a letter sent to the stock exchange.

The Fund’s shareholders have extended by two years the management contract with Franklin Templeton, effective as of autumn 2014 [when the current management contract expires] but set high targets to be met. Among the targets, the manager has to narrow the discount at which the Fund’s shares are traded [from current 30% - between the market price and the net value of the assets].

The Fund’s shareholders decided in November on a new buyback programme, which explains the need for cash liquidity. The Fund will start a new buyback campaign after the current one completes. It started an 18-month, 10% buyback programme in April 2012 and recently completed a 4.35% buyback campaign – as part of the 10% programme. The buyback programmes are financed via the sale of assets in the Fund’s portfolio.

Related Articles

Moldovan businessman Stati threatens to ask bailiffs to sell Kazakh Kashagan stake in legal battle

Moldovan businessman Anatolie Stati’s spokeswoman said on January 9 that Stati will ask bailiffs to sell a $5.2bn stake in the Kashagan oil field owned by Kazakh sovereign ... more

Romania’s Transgaz reportedly renews bid for Greece’s DESFA

Romanian gas transport company Transgaz has teamed up with Spain’s Regasificadora del Noroeste in an attempt to take over its Greek peer DESFA, where the Greek state has put a 66% stake up for ... more

Poland’s PKN Orlen launches offer to delist Czechia’s Unipetrol

Poland’s state-controlled oil and gas company PKN Orlen has launched an offer to take over Czech refiner Unipetrol, the Polish company said on December 13. PKN Orlen said it will go through with ... more