FP: the public offering, extended. Manchester Securities Group can sell more

Romania’s Financial Supervisory Authority (ASF) approved the amendment FP submitted in order to extend the current public offering. Hence, the offering started on October 15 will be ended on November 14, ten days later than the date firstly established. Besides the extension, ASF also approved an amendment enabling a shareholder that holds more than 600 million shares to place subscription orders for a higher number of shares and in case the offering will be oversubscribed (it has already been oversubscribed), the distribution will be made pro rata.

‘If the total amount of the shares available to be sold by the shareholders who accepted the public offering in accordance with the provisions of this offering document exceeds the number of the shares of the offering, then the distribution is made pro rata. In order to avoid any uncertainty, in this case, any shareholder that accepted the public offering is going to sell shares in a number equivalent to the number of shares afferent to a subscription order filled by the shareholder and validated by the intermediaries in compliance with this offering document, multiplied by the ration between the total number of the shares of the offering and the total number of the shares for which the shareholders filled in subscription orders validate by those intermediaries. (…) For any doubt be avoided, a shareholder that holds more than 600 million available shares, fully paid, have the right to subscribe a higher number of shares and that number will be duly taken in consideration in the total number of shares subscribed at the moment of the pro rata distribution, but the maximum number of shares that will be purchased within the public offering is 600 million.’ states the document that stipulates the respective amendments and approved by ASF.

Manchester Securities Group, the company controlled by Elliot Associates and also FP’s main shareholder with about 15% of the total shares is the main beneficiary of the modification, being able to sell more considering the public offering has already been oversubscribed. Without eliminating that criteria, the Group would have been able to submit subscription orders only for those 600 million shares meaning that it would have effectively sold a number of shares proportionally with the pro rata that will have been established once the offering would have been carried out. (i.e. In case there will be submitted subscription orders for 1.2 billion shares, then the oversubscription percentage will be 100% and someone who subscribed for 500 shares will receive only half). A limited number, though, now, the company being able to subscribe all the shares it holds - afferent to the 15% of FP’s social capital and consequently increase its revenue.

Proprietatea Fund (FP) started on October 15 its public offering through which expects to redeem up to 600 million shares from the fund’s shareholders, the price per share being RON 1, RON0.28 higher than the average price reported by Bucharest Stock Exchange (BVB). The public offering is being intermediated by BCR and Wood & Company Financial Services and upon its completion, the 600 million shares representing 4.35% of FP’s capital are going to be annulled and its capital, reduced with the amount equivalent to the book value of those shares.