Fondul Proprietatea S.A. (FDLPF)

[Enterprising Investor]

Fondul Proprietatea to proceed with a partial sale of its shares in OMV Petrom by a secondary public offering (9/26/16)

Fondul Proprietatea announces that, as part of its ongoing commitment to increase value for its shareholders and to improve the liquidity of the assets in the Fund portfolio, the Fund has taken a decision to proceed with a partial sale of its ownership interest in OMV Petrom.

The sale will go via a public offering of both shares and global depositary receipts representing interests in the existing shares of the OMV Petrom with the GDRs intended to be admitted to listing on the standard segment of the official list of the UK Financial Conduct Authority and to trading on the London Stock Exchange main market for listed securities (subject to satisfying certain eligibility criteria).

The Fund currently holds approximately 19 per cent of the issued share capital of OMV Petrom (representing 22.87 per cent of the Fund NAV as at 31 August 2016) and aims to enhance the trading liquidity of the company shares while remaining committed as a long term core shareholder to its successful development; Also, shareholders of OMV Petrom S.A confirmed, by means of a decision of the shareholders assembly, their support for the Company's GDRs to be admitted to listing on the Official List of the UK FCA and to trading on the London Stock Exchange's Main Market, in addition to the existing listing of its ordinary shares on the Bucharest Stock Exchange;

The offering is expected to be completed in the fourth quarter of 2016, subject to market conditions, approval of the Prospectus by the Romanian Financial Supervision Authority and the confirmation of the UK Listing Authority regarding the eligibility of the Company for admission to the Official List of the UK Financial Conduct Authority;

In relation to the offering, Goldman Sachs International is acting as Sole Global Coordinator and Joint Bookrunner and Banca Comerciala Romana, Erste Group and WOOD&Company are acting as Joint Bookrunners.

OMV Petrom is the largest integrated oil and gas group in SouthEastern Europe, with an annual oil and gas production of approximately 65 mn boe in 2015. The Group has a refining capacity of 4.5 mn tons/year and operates an 860 MW high efficiency power plant and a 45 MW wind park. The Group is present on the oil products retail markets in Romania and neighbouring countries through 784 filling stations, as at 30 June 2016.

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