Monday, October 14, 2013

Romania Fondul Proprietatea shares hit record high

Oct 11 (Reuters) - Shares in Romanian investment fund Fondul Proprietatea briefly hit an all-time high on Friday after a public tender offer aimed at speeding up its share buy-back programme got approval from the Financial Supervisory Authority on Thursday.

It plans to repurchase 600 million shares representing 4.3546 percent of its share capital at a price of 1 leu per share.

Set up by the government to compensate Romanians whose assets were seized under communism, Fondul is managed by Franklin Templeton and holds minority stakes in some state-owned companies.

Its share price was up 0.85 percent at 0.7835 lei by 0950 GMT on the Bucharest Stock Exchange, falling back after scaling to a record high of 0.8095 lei earlier in the session.

The tender offer is being brokered by Banca Comerciala Romana and Wood & Co. and the subscription is due to run from Oct. 15 to Nov. 4, the bourse said in a statement.

The fund launched its buy-back programme earlier this year, with daily purchases of shares from the bourse, in an attempt to lower its share capital and narrow the discount between its net asset value and its stock price. (Reporting by Radu Marinas; Editing by Greg Mahlich)

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