The Romanian government, which holds 6.5 shares in Fondul Proprietatea and 10.4% of the voting rights, announced plans to stop the sale of FP’s large stakes such as that held at Engie Romania, a policy promoted by Fund manager Franklin Templeton for financing cash distribution or shares buy-back schemes.
Enforcing such measures, which are in line with the state’s plans to involve Fondul Proprietatea in the financing of large-sized projects under the Resilience Facility, needs support from other FP shareholders, most likely the pension funds.
So far, the pension funds have been supportive of the Government’s decision to extend a short-term mandate to Franklin Templeton until a more appropriate fund manager is found.
The sale of the 12% stake in energy provider Engie Romania has already been signed by the fund with GDF International for a price of 87 million euros but it cannot be concluded without the approval of FP’s shareholders.
