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Mobius' next target: bring FP Bourse price to the same level as the asset value

Mobius' next target: bring FP Bourse price to the same level as the asset value

Autor: Roxana Pricop

26.01.2011, 00:03 24

Stock repurchase and persuading the Romanian state toprivatise energy companies make the "ace" up the sleeve of FranklinTempleton manager to boost the price of FP shares on the Bourse, sothat it should be as close as possible or even equal that of theFund value of 1.11 RON/share.

After having turned the improbable possible and listed FondulProprietatea on the Bucharest Stock Exchange, Franklin Templeton'smanager now has the task of bolstering the value of FP sharesbecause compensating tens of thousand former owners, as well as thesum he gets for the management mandate depend on the price of theshare on the Bourse.
"It is very important to boost the Fund's value so that we shouldnarrow down the gap between the share price, now at 0.6 RON on theBourse (yesterday around 11.00 i.e.) and the unit value of the netasset, of 1.1 RON, and maybe even go beyond this threshold. We willdecide for the Fund to buy back shares to maintain the price.However, if the state returned the money plus the interest fromRomgaz' donation or decided to privatise Hidroelectrica,Nuclearelectrica and float them on the Bourse, so that it should beleft with just 20% in these companies, then it would be interestingto see the trend of FP shares," said Mark Mobius, executivechairman of Templeton Asset Management, the emerging marketinvestment arm of Franklin Templeton.