The shareholders of the Romanian investment fund Fondul Proprietatea (FP) decided yesterday to reduce the fund’s capital by RON 550 million (EUR 121.3 million).

The nominal value of a FP share will go down from RON 0.90 to RON 0.85 per title. The difference of RON 0.05 per share will be distributed to shareholders within an operation of capital contribution in cash.

This is the third capital distribution operation by Fondul Proprietatea. The fund has been using these distributions as a replacement to dividends, which are taxed by 16%. The capital distributions are not taxed.

Earlier this week, Fondul Proprietatea called off the public offer for buying back its own shares, due to the “recent major adjustments in stock market prices”.

editor@romania-insider.com