BUCHAREST – Fondul Proprietatea SA, a Romanian closed-end investment fund, announced on Monday that its shareholders approved a series of important resolutions during the Extraordinary and Ordinary General Meeting held on December 2, 2024. The fund, managed by Franklin Templeton International Services IS. À RL, has decided to issue its global depository receipts (GDRs) to London Stock Exchange (LON:) and reduced its share capital following the cancellation of share buybacks in 2024.
The shareholders decided to delist the GDRs, one GDR representing 50 shares of the Fund. The delisting includes the termination of the deposit agreement dated April 27, 2015, and other related contractual relationships with The Bank of New York Mellon (NYSE:). Additionally, the Fund Manager is authorized to receive information about the delisting process, including the conversion period for GDR holders and the effective date of delisting.
In addition, the Fund’s share capital will decrease by RON 184,934,215.96, from RON 1,849,342,164.28 to RON 1,664,407,948.32, due to the withdrawal of 355,642,723 shares acquired through its buyback program. After dilution, the capital stock will be divided into 3,200,784,516 shares, each with a nominal value of RON 0.52. These reductions are subject to publication in the Official Gazette of Romania and approval from the Fiscal Authority.
In addition, the shareholders approved the authorization for the Sole Director to purchase up to 320 million shares or GDRs during the fiscal year 2025, from the date of publication of the resolution in the Official Gazette. The purchase price range is set between RON 0.2 and RON 1 per share, which aims to further reduce the Fund’s share capital in accordance with Companies Law No. 31/1990.
The Advance Date and Registration Date for these resolutions are scheduled for December 19 and December 20, 2024, respectively. Johan Meyer, the permanent representative of the Fund manager, is empowered to sign shareholder resolutions and carry out the necessary procedures for their implementation.
At the Ordinary General Meeting, the shareholders appointed a new member of the Board of Nominees for a period of three years after the end of the mandate of Nicholas Paris on April 6, 2024. In addition, the 2025 budget of Fondul Proprietatea was approved.
These strategic decisions, based on a press release, reflect Fondul Proprietatea’s efforts to restructure its financial instruments and improve its capital structure. The fund is listed on the Bucharest Stock Exchange with shares and on the London Stock Exchange with GDRs.
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