FONDUL PROPRIETATEA BUYBACK ACCELARATION?

Swiss capital just reported:

* Local media mentions FP RO may sell its entire 19% stake in OMV Petrom (SNP RO) in the next few days according to uncited sources, local news website economica.net wrote today.

* FP’s stake in SNP RO is currently valued at EUR 1.1bln (USD 1.4bln), that would be largest deal to date on the Bucharest SE.

* SNP stake represents 35% of FP’s NAV.

Fit Investment Ideas comment:

I do not doubt that if this is correct than it is a result of Paul Singer´s Elliot Associates activst preassure on Templeton.

At the moment Fondul has 8% of NAV in cash. If this rumor is right the cash would go to 43% of NAV. This would mean significant buyback acceleration. Personally I believe such large transaction is unlikely. Selling “only” half of the OMV Petrom stake would leave Fondul with 25% of its NAV in cash. At current NAV discount it would allow Fondul to buy back close to 35% of outstanding shares at current prices. If correct I would expect significant rerating in the FP.

Yesterday Elliot Associates announced, that it has increased their stake by 26 mn shares in FP. It is a first purchase in many months. It might be an indication that something may be happening.

4 Comments

  1. jason says:

    What are the best options for buying FP? I don’t know of a good way to get access to the Romanian exchange.

    Like

    1. Most big brokers can do it.
      The largest brokers are Wood and Company and Swiss Capital. It is easy to set up account.

      Like

  2. Greg K. says:

    just contact Stere at Swiss Capital, he will set you up with an account. He’s the best trader on the street.

    Like

    1. Or Mr. Vavra at Wood and Co. He is excellent too

      Like

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