Fondul Proprietatea could be listed on the London Stock Exchange by the end of next year, according to Mark Mobius, president of Franklin Templeton, the company which manages the Proprietatea Fund.

The preparation for this listing could take up to nine months, as it implies several structural changes, according to Mobius. It will require the support of London brokers, as well as roadshows for investors in the US, China and other countries, to explain what Romania offers and where it is, according to Mobius. “We need to put Romania on the map through this fund's administration," he went on to saying, quoted by Mediafax.

Investment management firm Franklin Templeton has officially taken over the management of Fondul Proprietatea, after the fund’s shareholders vote earlier today.

The management company had won the bid to run the assets of Fondul Proprietatea, but was yet to be officially named fund manager. Fondul Proprietatea has assets worth EUR 3.4 billion and Frankin Templeton will cash in a EUR 16 million commission a year for managing its assets. A listing on the local stock exchange is planned for the beginning of next year.

The Proprietatea fund is a closed investment fund created to compensate former owners whose properties were confiscated during the communist regime and which cannot be redeemed in nature. The Fund has participations in 88 companies, most of which in the energy sector. The Fund’s listing on the stock exchange has been delayed one year to another. Listing 20 percent of the Fund’s shares should attract $ 500 million, according to Franklin Templeton representatives.

The main shareholders in the fund are the Finance Ministry, with 56,98 percent of the shares, 3,469 individuals, who have 31,62 percent of the shares and other firms, with 11,39 percent.

romania-insider.com