Fondul Proprietatea on Thursday criticized the recent decision taken by the General Shareholders Assembly of Engie on 28 November 2018 against its proposal to list its 12 percent stake in the company
“Fondul Proprietatea is disappointed with the decision taken by the majority shareholder of Engie SA, Romania Gas Holding B.V., to oppose the listing of the company. We acknowledged the fact that the Romanian State abstained from voting for this point of the agenda. The listing would have represented a great opportunity for Engie SA to prove it upholds the highest transparency standards, as required for a listed company, while accessing the capital market would have provided a major reputational gain for the company, Johan Meyer, CEO of Franklin Templeton Investments Management Limited Bucharest Branch and Portfolio Manager of Fondul Proprietatea, stated in a press release.
He pointed out the listing of a large company such as Engie SA would have made a significant contribution to the development of the local capital market by increasing its size and liquidity given that Fondul Proprietatea would have placed its entire stake in the proposed IPO.
„It would have also offered the Romanian State the opportunity for a liquidity event at the IPO or at any point in the future. The proposed IPO could have been a new step towards achieving Emergent Market status which would be beneficial for all listed companies and the entire Romanian economy,” Meyer said.
However, he is confident that all the benefits that come with a listing on the stock exchange will determine Engie and the Romanian State to reconsider their position in the future.
Fondul Proprietatea evaluates its participation of 12 percent at Engie Romania to RON 472 million.