Fondul Proprietatea plans to sell stakes in Electrica subsidiaries and other energy distributors

Fondul Proprietatea (FP) is still interested in selling the stakes owned in the Electrica subsidiaries and in others energy& gas distributors, said the representatives of the close-end fund.

„FP analyzes regularly the market for making potential transactions at the level of the companies from portfolio, aiming to generate value for its shareholders and the increase in free floating on the capital market. When there are significant evolutions, with a material impact regarding the transactions, we’ll announce as usually the entire market, through the intermediary of a current report,” said the FP representatives.

According to them, after the previous announcements regarding the intention of reducing the stakes in OMV Petrom, FP continued to monitor the market, waiting for more encouraging conditions.

“FP dedicated to start the partial selling of stakes in OMV Petrom, taking into account the favorable context of transactions on the capital market at European level,” said the FP representatives.

The fund will proceed with a sale of part of its interest in OMV Petrom S.A. through a public offering of both shares and GDRs (Global Depositary Receipt). The offering will consist of the fund’s owned shares only and will e closed on the last quarter of this year. OMV Petrom will not raise new capital in connection with the public offering and will not receive any of the proceeds from it, according to a BVB release from Friday.

Also, according to BVB, the fund currently holds approximately 19 percent of the issued share capital of the Company and aims to enhance the trading liquidity of the oil major’s shares while remaining committed as a long term core shareholder to its successful development.

“Shareholders of OMV Petrom S.A confirmed, by means of a decision of the shareholders’ assembly, their support for the Company’s GDRs to be admitted to listing on the Official List of the UK FCA and to trading on the London Stock Exchange’s Main Market, in addition to the existing listing of its ordinary shares on the Bucharest Stock Exchange. The offering is expected to be completed in the fourth quarter of 2016, subject to market conditions, approval of the Prospectus by the Romanian Financial Supervision Authority and the confirmation of the UK Listing Authority regarding the eligibility of the Company for admission to the Official List of the UK Financial Conduct Authority, “ said the FP.