In a recent development, the Romanian government has blocked the sale of Fondul Proprietatea's stakes in Bucharest Airports, Constanta port, and Salrom. Shareholders of Fondul Proprietatea, including the Romanian finance ministry and Romanian institutional investors, rejected a proposal by the fund's manager, Franklin Templeton, to sell these stakes. Franklin Templeton aims to bring Fondul Proprietatea's price in line with the value of its portfolio and cash the portfolio as close as possible to its value. However, the Romanian government has a different approach, seeking to turn Fondul Proprietatea into a more active player by investing in infrastructure projects financed under the National Recovery and Resilience Plan (PNRR). The government initially attempted to block all the exits planned by Franklin Templeton but failed to block the sale of Fondul Proprietatea's stake in energy company Engie. Fondul Proprietatea will proceed with selling its 12% stake in Engie and use the cash proceeds to buy back its shares. [79fbc01b]
Meanwhile, in Budapest, the Hungarian state has acquired an 80% stake in Budapest Airport for EUR 2.48 billion, with VINCI Airports purchasing a 20% stake for EUR 620 million. After more than a year of negotiations, Minister of National Economy Márton Nagy announced the reacquisition of the airport, stating, 'We’ve reclaimed it, it’s in Hungarian hands again.' VINCI Airports will be responsible for the future operation of the airport under the strategic guidance of the Hungarian state. The airport is currently undergoing major developments, including the renovation of Terminal 1 and investments related to Terminal 2. The audited consolidated EBITDA for 2019 was EUR 254 million, meaning that the airport was acquired for nearly 16.5 times EBITDA. The purchase price paid for the shares was settled on a pro rata basis. An international press conference will be held in July to present the plans for the transaction and the future of the airport in detail. [ae559a8a]
In Brussels, the European Commission is expected to approve Lufthansa's €325 million stake deal in ITA. The deal is set to be cleared by the European Commission, allowing Lufthansa to acquire a stake in ITA. The approval comes after Lufthansa agreed to certain conditions, including giving up slots at Milan Linate airport. The deal is part of Lufthansa's strategy to expand its presence in Italy and strengthen its position in the European market. The European Commission's decision is expected to be announced soon. [b4391da6]