The Greater China Fund, Inc. (NYSE: GCH) Announces Approval of Aberdeen Asset Management Asia Limited as Investment Manager and Plan to Commence Tender Offer
NEW YORK, Jan. 8, 2013 /PRNewswire/ -- The Greater China Fund, Inc. (NYSE: GCH) (the "Fund") announced today that Fund stockholders have approved Aberdeen Asset Management Asia Limited ("Aberdeen") as the Fund's new investment manager at the Special Meeting of Stockholders of the Fund (the "Special Meeting") held earlier today.
Additionally, as a result of Aberdeen's approval by stockholders, and pursuant to the Fund's previously announced agreement between the Fund and City of London Investment Management Limited ("CLIM"), the Fund's largest stockholder, the Fund announced that it intends to commence promptly an issuer tender offer to acquire in exchange for cash up to 70% of the Fund's issued and outstanding shares at a price per share equal to 99% of the Fund's net asset value per share as determined by the Fund on the next business day following the expiration date of the tender offer (the "Tender Offer"). CLIM has agreed with the Fund to tender all of the Fund shares it beneficially owns in the Tender Offer and in the event that CLIM is able to tender all of the Fund shares it beneficially owns, CLIM has agreed that it will enter into a "standstill agreement" with the Fund for one year following the completion of the Tender Offer. Under the standstill agreement, CLIM will be permitted to be a passive investor in the Fund and to purchase shares of the Fund for investment purposes only. The Fund has further agreed with CLIM that if 75% or more of the Fund's outstanding shares have been tendered and not withdrawn in the Tender Offer, then the Tender Offer will be cancelled, the Board of Directors will recommend that the Fund be liquidated and the Fund will proceed to solicit proxies from stockholders for the liquidation and dissolution of the Fund immediately thereafter.
The above statements are not intended to constitute an offer to participate in the Tender Offer. Information about the Tender Offer, including its commencement, will be announced via future press releases. Stockholders will be notified in accordance with the requirements of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, as amended, either by publication or mailing or both. The Tender Offer will be made only by an Offer to Repurchase, a related Letter of Transmittal and other documents, to be filed with the Securities and Exchange Commission (the "SEC"). Stockholders of the Fund should read the Offer to Repurchase and tender offer statement and related exhibits when those documents are filed and become available, as they will contain important information about the Tender Offer. These and other filed documents will be available to investors for free both at the website of the SEC and from the Fund.
Closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed-end funds are sold in the open market through a share exchange. Shares of closed-end funds frequently trade at a discount to the net asset value. The price of a fund's shares is determined by a number of factors, several of which are beyond the control of the fund. Therefore, a fund cannot predict whether its shares will trade at, below or above net asset value.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of the Fund's shares in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
SOURCE The Greater China Fund, Inc.