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Market to be flooded with cheap Fondul Proprietatea shares as of Monday

Autor: Andrei Chirileasa

28.04.2011, 23:55 87

Almost 1.5 billion Fondul Proprietatea (FP) shares, accountingfor 10.7% in the capital of the fund might be transferred by theFinance Ministry to those people who hold compensation deeds andhave chosen to have them converted into shares at an average priceof 0.6176 lei/share, according to the data supplied by the NationalAuthority for Property Restitution (ANRP).

The ANRP will resume the issuing of conversion deeds onMonday, May 2, a process halted on January 11, prior to thefloatation of the fund.

Brokers say the availability of such deeds on the market willput pressure on the price of FP shares, which have been following adownward trend since floatation. The FP shares have gone down from0.61 lei to 0.579 lei in the past month.

The explanation is that those that will get shares from May 2 to6 will get them at a price equal to the average quote of the firstsixty trading sessions of FP shares on the Bourse (from January 25to April 19), 0.6176 lei, unlike those who got shares before thelisting, at a price of 1 leu. Therefore they will be much moretempted to sell at the current prices.

As of May 9, the conversion of the compensation deeds will bedone at the average price of the last sixty trading sessionsdisplayed at the Bucharest Stock Exchange every day.

"From January 11, 2011 through April 15, 2011 we registered1,284 requests opting for shares, with the number of the shares tobe issued after the expiry of the suspension period, that is as ofMay 2, 2011, standing at 1,483,179,773. We would like to add thatin calculating this figure we used the weighted average price of0.6176 lei/share, as supplied by the Bucharest Stock Exchange onApril 19, 2011," reveals the information supplied to ZF byANRP.

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