Stiri	Stiri afaceri	Stiri companii	Evenimente de afaceri

Proprietatea Fund EUR 28 mn stock repurchase over past four months

Proprietatea Fund (FP) has bought its own shares in exchange of 120 million lei (28 million euros) over the past four months, with the buyback being among the most important investments made by the Fund on BSE, reads Ziarul Financiar daily.

Proprietatea Fund announced they finished the 120 million lei meant for the programme of stock repurchase. Out of this amount, the fund bought back a stake of 240.7 million shares, representing 1.7 percent of its capital.

Buying their own stock is among the major investments made by the fund on Bucharest Stock Exchange this year, with only the purchase of the BRD-SG shares topping them, according to the latest information available. Thus, the fund bought BRD-SG shares worth about 170 million lei in the first half of this year.

The fund made bigger investments on the Vienna Stock Exchange, where it bought shares from Erste Bank Group, the majority shareholder of the Romanian Commercial Bank, in exchange of more than 180 million lei, and from Raiffeisen Bank in amount of 160 million lei.

The stock repurchase programme valid till March 2012 started practically on May 11, when the first operation occurred, and concluded four months and a half later, due to the limited financial resources available. The operations were brokered by the Czech brokerage house Wood & Co.

The announced purpose of the stock buyback programme was to support the share price, reads Ziarul Financiar newspaper. The experts say that the buyback could not redeem the shares from their downward spiral, but can only prevent further depreciations.

The latest price on the market of about 0.42 lei per share is 33 percent smaller than the price of the first day of listing and 60 percent below the net asset value. Since May 11, when the first stock repurchase operation took place until September 30, the FP shares lost 20 percent of their value, under the impact of the turmoil on the foreign markets, but also of the pressure to sell from the former owners who received the shares as damages after years of expectations, the aforementioned newspaper reads.

Proprietatea Fund was created to pay damages to the former owners of real estate who were abusively stripped of their possessions during the communist era (1945-1989).

Sursa: http://www.actmedia.eu

Tags: shares million proprietatea months repurchase stock brd