Wednesday, December 31, 2008

The richest man in Romania builds a stake in the property investment trust via BVI holding

The specialist property investment trust Fabian Romania accepted an all-cash offer for its entire share issue at a premium of 93.2% over the current price. The offer, which now remains at a large discount to the most recent company estimates on portfolio net asset value, was made by Dinu Patriciu, chief executive of Rompetrol and the richest man in Romania. Patriciu has built a 25.4% stake in the trust via a British Virgin Islands holding company. The trust is small and niche, extremely well-held by blue-chip investors; the offer values the current portfolio of completed and development property at €50.8 million (£47.49 million).

Director of Fabian Romania Mark Holdsworth said that after this deal their shareholders have the opportunity to realise their investment in Fabian Romania for cash at a substantial premium to the prevailing share price, at a time of considerable economic uncertainty.