Franklin Templeton, in its capacity of alternative investment fund manager of Romania’s largest investment fund Fondul Proprietatea (FP), on January 19 announced the launch of an accelerated bookbuild offering of up to 1.7 bln ordinary shares (representing a 3% stake) in OMV Petrom. Book building will commence immediately.

Petrom will not receive any proceeds from the transaction.

The Fund, depending on the investors’ interest, may decide to add another 1.15 bln (2% of total) shares, resulting in a total of up to 5% stake in OMV Petrom potentially for sale.

The latest data show that FP owns 7% of Petrom after making several such accelerated sales recently.

Usually, such sales are immediately reflected in the share price of the target company. OMV Petrom in this case), in a negative sense, given the fact that the Fund sells at prices below the market price prevailing at the time of the accelerated bookbuild offering.

The main buyers of such offers are the Pillar II pension funds.

The most recent such sale of Petrom dates from the autumn of 2020, when FP sold a 3% stake for RON 560 mln (EUR 130 mln). The offer lasted one day.

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andrei@romania-insider.com