Franklin Templeton, in its capacity as alternative investment fund manager and sole administrator of Fondul Proprietatea, celebrates the eleventh anniversary of the Fund’s listing on the Bucharest Stock Exchange on January 25, 2011.
Ilinca von Derenthall, President of the Candidates Council, said: “Fondul Proprietatea has continuously supported the development of the Romanian capital market and the implementation of best corporate governance practices at portfolio company level. There is still a lot to do and the only way forward is to list new companies on the stock market. We strongly advocate for these IPOs and in Hidroelectrica and Salrom we have two leading companies ready to start the listing process. We intend to take advantage of the strong dynamics of the local capital market and work for the benefit of all stakeholders. With the listing of these two companies, Romania takes an important step towards its promotion to emerging market status by MSCI, which will allow new inflows of funds to the Bucharest Stock Exchange.
On this occasion, Johan Meyer, CEO of Franklin Templeton Bucharest Branch and portfolio manager of Fondul Proprietatea said: “In the 11 years since listing, Fondul Proprietatea has made a significant contribution to the development of its portfolio companies by being closely involved in the implementation of corporate governance standards and advocating for greater transparency. The resulting improvement in financial performance has directly translated into value creation for investors in the Funds. We are ready to support the listing of public companies in the near future, as we believe this is a great opportunity to encourage more investment in Romania and create shareholder value. Companies such as Hidroelectrica and Salrom are well positioned to be major beneficiaries of their listing and will put Romania on the radar screen of investors around the world.
Last year, Fondul Proprietatea received approval in principle from the Ministry of Economy to list its stake in Salrom on the Bucharest Stock Exchange, and this year the Fund is seeking the necessary approvals from the Ministry of Energy to the Hydroelectrica listing.
The most significant achievements in the 11-year period since the Fund’s listing with BVB:
- The share price reached an all-time high of RON 2.22 per share on January 17, 2022, more than double RON 1.00 per share, which was the nominal value of the share at the inception of the Fund, thus reinforcing the consistent performance over the past 11 years.
- Since Franklin Templeton took over management of Fondul Proprietatea in September 2010, the Fund has made gross cash distributions of RON 7.2 billion ($2.1 billion) to shareholders and completed 12 buyback programs, worth more than RON 7.3 billion.
- Fondul Proprietatea completed approximately half of the special transactions (such as IPOs, SPOs and ABOs) executed on BVB between 2012 and 2021. The most significant transactions concluded by the Fund include: Transgaz ABO (2013), Transelectrica ABO (2014), Conpet ABO (2014), Romgaz ABO (2014, 2015, 2016) and Petrom ABO (2013, 2016, 2017, 2020, 2022).
- The volume of Fondul Proprietatea shares traded on BVB represents 33% of the total volume of shares traded on BVB between 2011 and 2021.
- PF rated 1st place among the most traded issuers on the BVB during the 11-year period, with an average trading value of 9.9 million RON, and was the 5th largest Romanian company listed on the BVB, representing nearly 6 % of total market capitalization at the end of 2021.