Proprietatea Fund Buys Back 0.04% Stake For RON2.8M

05.24.2011 By Florentina Dragu

Romanian investment fund Fondul Proprietatea (FP.RO) last week bought back 0.04% of its shares on the Bucharest bourse for 2.8 million lei (EUR0.68 million), the fund said in a statement Tuesday.

Fondul Proprietatea bought 5.6 million shares at an average price of RON0.5115 a share.

Tuesday, Fondul Proprietatea closed down 0.3% at RON0.5 a share.

The fund initiated a buy-back process on May 11. So far, the fund bought back a stake of 0.09% for a total of RON6.7 million.

Fondul Proprietatea plans to allocate RON120.3 million (EUR28.3 million) to buy back stock on the Bucharest bourse. The amount is estimated to cover the purchase of a stake of up to 1.7%, well below the fund's target of around 10%.

Fondul Proprietatea was set up in 2005 to compensate Romanians whose properties were seized during communism.

The fund was floated on the Bucharest Stock Exchange on January 25. (EUR1=RON4.1233)