Romanian investment fund Fondul Proprietatea (FP) has proposed a reduction of its share capital by RON 610 million (EUR 137 million) and the distribution of this amount to its shareholders, according to an announcement posted on the Bucharest Stock Exchange (BVB).

Each shareholder would receive RON 0.05 per share. The distribution of cash is about 5.3% of the price for which its shares were traded on Tuesday (November 18), which was of RON 0.9395.

"The decrease is motivated by the optimization of the fund’s share capital" reads the FP report. This would be the second capital distribution made by the fund.

This summer Fondul Proprietatea shareholders received RON 677 million RON (EUR 150 million) of the FP’s share capital, or RON 0.05 per share.

The fund also has a buyback public offer ongoing for 750 million of its own shares (representing 6% of its capital) at a price of RON 1.11 per share. With this offer, the fund will pay its shareholders another EUR 186 million. The offer ends on December 2.

The fund is currently valued on the Bucharest Stock Exchange at EUR 2.64 billion.

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editor@romania-insider.com