Fondul Proprietatea's stakes in unlisted companies, the state's"crown jewels", are valued on the Bourse at less than 25% of thevalue they were registered at in the Fund's net asset in lateDecember.
A simple calculation shows that if the value of the fund'slisted stakes, yesterday standing at some 1.23bn euros, and thearound 310m-euro liquidities are extracted from FP's yesterdaycapitalisation, of around 2.07bn euros, it results that theunlisted stakes in FP's portfolio are currently valued on themarket at just 530m euros, namely less than a quarter of their"book" value.
Analysts have explanations for this situation, starting from thefact that investors now buying FP shares apply a significantdiscount to the asset value because of the risks associated withthe Romanian market, which is a frontier market, where investmentfunds expect gains of over 10-15% per annum.
Moreover, the fact that many of the companies part of the fund'sportfolio are not listed and are controlled by the state is anadditional risk.
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