Financial Supervisory Authority approves capital reduction for cash distribution at Proprietatea Fund

The Financial Supervisory Authority has approved the reduction of the subscribed social capital of the Proprietatea Fund from 11.575 billion lei to 10.965 billion lei, to distribute cash to the fund unit holders, the management company of the Fund announced on Friday in a report to the Bucharest Stock Exchange (BVB).

Photo credit: (c) Cristian NISTOR / AGERPRES ARCHIVE

The Bucharest subsidiary of Franklin Templeton Investment Management Limited UK, manager of the Proprietatea Fund, reported that the face value of the Fund's shares was now 0.9 lei instead of 0.95 lei. As of May 21, the 10.965 billion lei subscribed capital of the fund was divided into 12.184 billion shares and the 19.638 billion lei paid-up capital was divided into 11.820 billion shares.

The cash payments of 0.05 lei per share will start on June 29, only to the shareholders registered in the Fund's Shareholders Registry on June 24, the official registration date set up by extraordinary general meeting of the shareholders on January 21.

The Proprietatea [Property] Fund is an independent joint stock company set up to compensate the abusive confiscation of properties by the Communist regime of Romania, by issuing shares to the victims; its assets include stocks of several state-owned companies.

Since April 29, Proprietatea Fund global deposit receipts (GDR) are traded in the Specialist Fund Market segment of the London Stock Exchange; GDRs cannot exceed one third of the total value of the fund.

In the first quarter of 2015, the Fund had non-audited net losses of 668.7 million lei, 23 percent greater year-on-year, according to its quarterly report published on BVB's website. The document mentions own capitals of more than 12.566 billion lei on March 31, down...