FP is projected as one of the biggest businesses in Romania for the next decade. The fund held stakes put at 4bn euros when it was set up, plus hundreds of millions of euros in cash.
The US fund was assisted in the deal by Nicolae Ivan, the first chairman of FP, subsequently dismissed by the Government, but now working for Cartesian.
Ivan was appointed to the helm of FP in early 2006, but was ousted after four months by the Government with no specific explanation being offered. Alexandru Paunescu, NBR advisor, was designated to replace him, running the fund until late last year. Practically, Ivan returned to FP as a "stockholder.
"Fondul Proprietatea is an investment I believe in and I recommended this acquisition. (...), Ivan told ZF.
He chose not to disclose what other placements Cartesian has, the strategy for the stake in FP or the price the shares were acquired at.
Before being appointed as president of FP, Ivan had been a secretary of state with the Finance Ministry, in charge of the organisation of the fund and also has experience in the field of investment funds.
FP stock is not listed on the Bourse, so that the purchase of significant stakes from those who received them from the state requires information on the identity of shareholders and those who are to receive shares, information that is not known to the public.
Cartesian Group now controls around 400 million of the fund?s shares, with a total face value of 400m RON (115m euros). In line with market information, a FP share is traded at around 60% of its face value.
At this price, Cartesian?s participation in the fund is worth around 70m euros. According to certain sources close to FP, Cartesian?s acquisition was carried out through an investment vehicle registered in Cyprus. Cartesian Group was not represented at the General Meeting of Shareholders by Ivan, but by another group official, Gregory Armstrong. He chose not to make any comment on the investment in FP.
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