THE SHAREHOLDERS HAVE COME TO A DECISION: Franklin Templeton will manage the Proprietatea Fund

• The company will be paid 13 million Euros a year

The Proprietatea Fund will be managed by American giant Franklin Templeton for an annual fee of 13 million Euros, after the majority of shareholders of the Fund, whose aggregated holdings in the fund amount to 99%, approved the management contract.

So, more than one year after the beginning of the procedure for selecting the new manager, Franklin Templeton will take over the management of the assets of the "Proprietatea" fund, which are worth an estimated 11 billion lei and include some of the most valuable companies in the energy sector.

In early June, Franklin Templeton was selected as the winner by the Selection Commission, but had to wait until now for the Government"s approval.

The tender submitted by Franklin Templeton was severely criticized by the managers of the Proprietatea Fund, who argued that the fee requested by Franklin Templeton was too steep.

• The Proprietatea Fund will earn 230 million Euros in selling off its stakes in the divisions of CEZ group

Also yesterday, the shareholders of the Proprietatea Fund have approved the sale of the fund"s holding in the distribution, sale and services divisions of energy group CEZ (formerly Electrica Oltenia), for 230 million Euros.

CEZ offered 10.7 Euros/share for the stakes of the fund in CEZ Distribuţie and CEZ Vânzare.

According to Daniela Lulache, General Manager of the Proprietatea Fund, the receipts from the sale of the stakes held in CEZ will be distributed as dividends to shareholders, from this year"s profits.

On the other hand, David Smart, the representative of Franklin Templeton, said that the proceeds from the sale of the stakes in CEZ would not go into the market straight away, but rather be invested gradually.

• Four shareholders are unhappy with the liquidation of the stakes in CEZ

Four shareholders of the Proprietatea Fund were unhappy with the state"s decision to sell its holdings in the three branches of CEZ, fearing that this will cause the Fund to be worth considerably less at the time of its listing on the stock exchange.

The Proprietatea fund holds 30% of CEZ Distribution, 30% of CEZ Sales and 12% of CEZ Services.

Apart from the Proprietatea Fund and CEZ which holds 51% of each branch - Electrica holds 19% of CEZ Distribution and CEZ Sales, as well as 37% in CEZ Services.