Press Statement – Fondul Proprietatea
In the context of the General Shareholders Meeting of Fondul Proprietatea, scheduled on 13 February 2024, Franklin Templeton International Services S.À R.L., in its capacity as alternative investment Fund Manager and sole director (the “Fund Manager”) of Fondul Proprietatea S.A. (the “Fund”), makes the following statement:
“As the Fund Manager of Fondul Proprietatea over the last 14 years, Franklin Templeton has been completely focused on unlocking and delivering significant value for all shareholders. This continues to be our primary purpose, within the parameters of our mandate, as approved by the shareholders of Fondul Proprietatea.
Since taking on the management mandate in 2011, Franklin Templeton delivered outstanding results for the shareholders of Fondul Proprietatea, including:
- Generated compounded annual returns of 20.29 % in RON terms (and 16.90% in USD terms} for shareholders since listing Fondul on the BVB. This compares favourably to many stock market indices.
- Distributed over 28.5 bn RON (US$6.9 billion)[1] to its shareholders through a combination of dividends, share buybacks, and tender offers, since the Fund’s establishment.
- Completed 14 buy-back programs of RON 10,319.5 million and proposed shareholders the commencement of the 15th buy-back programme[2]
Through our stewardship of Fondul Proprietatea in this time, Franklin Templeton has created further value-add for Romania as an investment destination, which has in turn helped enhance value for Fondul shareholders. This includes:
- The successful listing of the Fund’s stake in Hidroelectrica in July 2023 (10.5 billion RON), which was the largest listing in Romania to date and one of the biggest listings in Eastern Europe.
- Attracting over US$1.5 billion of new foreign portfolio investments into Romania since 2011
- Executing 35 private transactions and14 full exits via the capital market, with a cumulated value over RON 19.8 billion (USD 4.3 billion)[3]
- Substantially increasing the visibility of the Fund, Romania and the local market among global international investors, by organizing 6,200 meetings, 2200 conference calls and over 260 road-shows, investor days, events, and conferences since 2011.”
[1] As at 31 December 2023
[2] Subject to shareholders’ approval at the General Shareholders Meeting on 13 February 2024.
[3] Amount includes the sale of the Fund’s shareholding in the share capital of Engie, which is subject to shareholders’ approval at the General Shareholders Meeting on 13 February 2024
