PHILADELPHIA, Oct. 4, 2017 /PRNewswire/ -- The Board of
Directors of each of the Acquired Funds listed below, each of which
is a closed-end investment company advised by one or more
affiliates of Aberdeen Asset Management Inc., acting separately,
announces that it has approved a consolidation of its respective
Acquired Fund into the Acquiring Fund, subject to the receipt of
necessary shareholder approvals by each Fund:
Acquired Funds:
- Aberdeen Emerging Markets Smaller Company Opportunities Fund,
Inc. (NYSE American: ABE)
- Aberdeen Latin America Equity Fund, Inc. (NYSE American:
LAQ)
- Aberdeen Israel Fund, Inc. (NYSE American: ISL)
- Aberdeen Indonesia Fund, Inc. (NYSE American: IF)
- Aberdeen Singapore Fund, Inc. (NYSE: SGF)
- Aberdeen Greater China Fund, Inc. (NYSE: GCH)
Acquiring Fund:
- Aberdeen Chile Fund, Inc. (NYSE American: CH)
The consolidation of an Acquired Fund is subject to approval by
the shareholders of each such Fund. In addition, the
approval of the shareholders of the Acquiring Fund will be
required for the changes to the Acquiring Fund described
below and for the issuance of shares by the Acquiring Fund in
connection with the consolidations.
The Chairman of the Acquiring Fund said, "We welcome inquiries
from other closed-end funds whose shareholders may be attracted to
an emerging markets equity income strategy about joining the
consolidation."
The Board of Aberdeen Chile Fund, Inc. announces that it has
approved the consolidation of each Acquired Fund into the Aberdeen
Chile Fund, Inc. as well as changes to the Fund's name, ticker
symbol, investment objective and certain investment policies. Some
of the Acquiring Fund changes are subject to shareholder approval
and, all changes, provided shareholder approval is obtained, would
be effective upon the closing of a consolidation with one or more
Acquired Funds (the "Effective Date"). As a result of the proposed
changes, as of the Effective Date, the Acquiring Fund will be
renamed Aberdeen Emerging Markets Equity Income Fund, Inc. and will
invest in emerging market equity securities in order to seek total
return, consisting of a combination of capital appreciation and
income. The Acquiring Fund may also use leverage to achieve its
objective. It is anticipated that the Fund's benchmark would be the
MSCI Emerging Markets Index. The Fund would trade on the NYSE
American (formerly, NYSE MKT) under a new ticker symbol, expected
to be AEF.
The Aberdeen Emerging Markets Equity Income Fund, Inc. strategy
will seek to capitalize on Aberdeen's global emerging market equity
capability by investing in a global portfolio of emerging market
securities. The consolidation of these closed-end funds will create
a dividend generating emerging market closed-end fund that is
larger in size than any of the Acquired Funds, which may help to
provide improved liquidity of shares, a lower overall expense ratio
and improved market awareness including research coverage. The
combined fund is currently anticipated to generate higher
distributable income compared to the Funds
individually. Aberdeen and the Boards believe the combined
fund will provide investors with the opportunity to have exposure
to the growth potential of emerging markets and diversify their
sources of income.
Prior to the consolidation, an Acquired Fund may be required to
make a capital gains distribution. Following the consolidation, the
Acquiring Fund will commence a tender offer for shares of the
Acquiring Fund at 99% of NAV. In addition, it is anticipated that
the Acquiring Fund will realize capital gains in connection with
reconfiguration of its portfolio following the consolidation. It is
expected that assets distributed in the tender offer together
with capital gains accrued to-date by the Acquiring Fund and to be
distributed in 2018 will aggregate up to a maximum distribution of
50%, and not less than 40%, of the net assets of the combined fund.
The price, size and terms of the offer will be determined at a
later date.
Subject to the completion of the consolidation, the current
Board of the Acquiring Fund will also establish a targeted discount
policy, which will seek to manage the Acquiring Fund's discount by:
(1) committing the Fund to buy back shares in the open market when
the Fund's shares trade at a discount of 10% or more to NAV and (2)
undertaking a 15% tender offer if the average discount exceeds 11%
over any rolling twelve-month period commencing on the closing of
the consolidation and ending on December 31,
2019.
The investment adviser(s) to each Fund and the Board of each
Fund believe that the proposed consolidation is in the best
interests of the shareholders of that Fund.
Additional information regarding the consolidation and the
combined fund will be presented in a combined prospectus/proxy
statement sent to the Acquired Funds' shareholders and a proxy
statement sent to the Acquiring Fund's shareholders. Acquiring Fund
shareholders will be asked to vote on changes to the Fund's
investment policies and other matters to restructure the Fund into
one with an emerging markets equity income strategy to facilitate
the proposed consolidation at a shareholder meeting targeted for
the first quarter of 2018. Acquiring Fund shareholders will also be
asked to approve the issuance of additional shares in connection
with the consolidation. Shareholders of each Acquired Fund will be
asked to vote on the reorganization of their fund into the
Acquiring Fund at a special meeting currently targeted for
early-second quarter 2018.
The commencement and terms of the tender offer and the terms of
the targeted discount policy (described above) are pursuant to a
standstill agreement between the Funds and City of London
Investment Management Company Limited ("CoL"). Pursuant to the
agreement, CoL has agreed to (1) tender all shares of the Acquiring
Fund beneficially owned by it in the proposed tender offer, (2)
vote all shares beneficially owned in favor of all Director
nominees and proposals submitted at the 2018 special and/or annual
meetings to effect the consolidation and (3) be bound by certain
"standstill" covenants through December 31,
2019. Also pursuant to that agreement, the Acquiring Fund's
post-consolidation expense ratio will be capped at 1.20% through
December 31, 2019 (excluding leverage
costs, tax and non-routine/extraordinary expenses).
Important Information
The information in this press release is for informational
purposes only and shall not constitute an offer to sell or the
solicitation of an offer to sell or the solicitation of an offer to
buy any securities or the solicitation of any vote or approval in
any jurisdiction pursuant to or in connection with the proposed
transaction or otherwise, nor shall there be any sale, issuance or
transfer of securities in any jurisdiction in contravention of
applicable law. No offer of securities shall be made except by
means of a prospectus meeting the requirements of Section 10
of the Securities Act of 1933, as amended.
In connection with the proposed combination, the Acquired Funds
and the Acquiring Fund plan to file with the Securities and
Exchange Commission a combined joint prospectus/proxy statement and
the Acquiring Fund plans to file a proxy statement. When
the combined prospectus/proxy statement or proxy
statement, as the case may be, becomes available, shareholders are
advised to read it because it will contain important
information about the proposed transaction and related
matters. The combined prospectus/proxy statement and proxy
statement, when available, will be available for free at the
Commission's website www.sec.gov.
International investing entails special risk considerations,
including currency fluctuations, lower liquidity, economic and
political risks, and difference in accounting methods.
Closed-end funds are traded on the secondary market through one
of the stock exchanges. The Funds' investment return and principal
value will fluctuate so that an investor's shares may be worth more
or less than the original cost. Shares of closed-end funds may
trade above (a premium) or below (a discount) the net asset value
(NAV) of the fund's portfolio.
There is no assurance that any Fund will achieve its investment
objective. Past performance does not guarantee future results.
In the United States, Aberdeen
Asset Management (AAM) is the marketing name for the following
affiliated, registered investment advisers: Aberdeen Asset
Management Inc., Aberdeen Asset Managers Ltd, Aberdeen Asset
Management Ltd, Aberdeen Asset Management Asia Ltd and Aberdeen
Capital Management, LLC. Excluding Aberdeen Capital Management LLC,
each of these advisers are wholly owned by Standard Life Aberdeen
Plc. Aberdeen Capital Management, LLC is a wholly-owned
subsidiary of Aberdeen Asset Management Inc.
If you wish to receive information from or about
any Fund electronically, please contact
InvestorRelations@aberdeenstandard.com
http://cef.aberdeen-asset.us
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SOURCE Aberdeen Asset Management Inc.