Tender Offer - ABRDN EMERGING MARKETS EQUITY INCOME FUND, INC.
Form Type: N-CSR
Filing Date: 2025-03-10
Corporate Action: Tender-offer
Type: Update
Accession Number: 000110465925022140
Filing Summary: The abrdn Emerging Markets ex-China Fund, Inc. has undergone significant strategic changes as per the report dated to the fiscal year ended December 31, 2024, and filed on March 10, 2025. Key among the announcements is the approval of a tender offer to repurchase up to 20% of the Fund's outstanding shares, which commenced on January 21, 2025. The Fund will offer to purchase approximately 10,150,355 shares at a price equal to 98% of the Fund's NAV per share. The offer is designed to enhance shareholder value and provide liquidity, especially since the tender offer was oversubscribed, leading to pro-rata allocations. Additionally, the Fund's name changed from abrdn Emerging Markets Equity Income Fund, Inc. to abrdn Emerging Markets ex-China Fund, Inc., effective February 24, 2025. The 80% investment policy has also been amended to focus specifically on emerging markets excluding China, aligned with a new benchmark—the MSCI Emerging Markets ex-China Index. Moreover, the annualized distribution rate is set to increase from 6.5% to 10%, effective March 2025, with the aim of providing a sustainable cash distribution to shareholders while adjusting investment strategies to optimize returns amidst changing market conditions. These adjustments are part of a broader plan to shift away from investments affected more by China’s government policies, enhancing focus on fundamental factors influencing emerging market equities. These strategic initiatives reflect the Fund's goal of aligning its operations with the current economic environment and maximizing shareholder returns.
Additional details:
Item 1: Fund name change
Item 2: abrdn Emerging Markets ex-China Fund, Inc.
Item 1: Previous fund name
Item 2: abrdn Emerging Markets Equity Income Fund, Inc.
Item 1: Tender offer shares
Item 2: 10,150,355
Item 1: Tender offer percentage
Item 2: 20%
Item 1: New investment policy
Item 2: Invest at least 80% in emerging markets (excluding China) equity securities
Item 1: New benchmark
Item 2: MSCI Emerging Markets ex-China Index
Item 1: Annualized distribution rate
Item 2: 10%
Item 1: Previous annualized distribution rate
Item 2: 6.5%
Item 1: Tender offer price per share
Item 2: $6.07
Item 1: Tender offer commencement date
Item 2: January 21, 2025
Item 1: Tender offer expiration date
Item 2: February 20, 2025
Form Type: SC TO-I/A
Filing Date: 2025-02-21
Corporate Action: Tender-offer
Type: Update
Accession Number: 000110465925015977
Filing Summary: This document is an amendment to the Issuer Tender Offer Statement on Schedule TO filed by ABRDN Emerging Markets Equity Income Fund, Inc. It was initially filed on January 21, 2025, and this amendment serves to update Item 12 to include exhibit (a)(6), which contains the press release issued on February 21, 2025, announcing the preliminary results of the tender offer. The tender offer pertains to the common stock of the Fund with a par value of $0.001 per share, identified by CUSIP number 168834109. The offer is classified as an issuer tender offer subject to Rule 13e-4 of the Securities Exchange Act of 1934. The document continues to reference the previous Offer to Purchase and associated materials, confirming that no other significant changes have been made except for the inclusion of the latest press release. The filing certifies that the information provided is true and correct as of the date of the statement.
Additional details:
Title Of Class Of Securities: COMMON STOCK
Cusip Number: 168834109
Name Of Filing Person: ABRDN EMERGING MARKETS EQUITY INCOME FUND, INC.
Address Of Authorized Person: 1900 Market Street, Suite 200 Philadelphia, Pennsylvania 19103
Authorized Person Telephone: (215) 405-5773
Exhibit Items: ["Offer to Purchase","Form of Letter of Transmittal","Form of Letter to Brokers","Form of Notice of Guaranteed Delivery","Form of Letter to Clients","Text of press release issued on January 21, 2025","Text of press release issued on February 21, 2025"]
Form Type: SC TO-I
Filing Date: 2025-01-21
Corporate Action: Tender-offer
Type: New
Accession Number: 000110465925004954
Filing Summary: The document outlines an Issuer Tender Offer by abrdn Emerging Markets Equity Income Fund, Inc., targeting up to 10,150,355 of its common shares at a price equal to 98% of the net asset value (NAV) per share. The offer period begins on January 21, 2025, and ends on February 20, 2025. The offer represents about 20% of the Fund's outstanding shares, allowing shareholders to tender some or all of their shares. Payment for accepted tenders will be made in cash after the NAV is calculated at the end of the offer period. Shareholders can withdraw their tendered shares before acceptance by the Fund or after the expiration date. The computation for the NAV will occur on February 21, 2025, or later if the offer is extended. The Board of Directors unanimously approved this tender offer to provide shareholders with liquidity, affecting the Fund’s capital structure and shareholder expenses positively. It also discussed possible upcoming conditional tender offers based on future performance relative to the MSCI Emerging Markets ex-China Index. The Firm's name will change to abrdn Emerging Markets ex-China Fund, Inc. effective February 24, 2025.
Additional details:
Shares To Be Purchased: 10,150,355
Price Per Share: 98% of NAV
Offer Start Date: 2025-01-21
Expiration Date: 2025-02-20
Nav Valuation Date: 2025-02-21
Percentage Of Outstanding Shares: 20%
Reason For Offer: Provide liquidity to shareholders
Fund Name Change Date: 2025-02-24
New Fund Name: abrdn Emerging Markets ex-China Fund, Inc.
Form Type: 8-K
Filing Date: 2024-12-16
Corporate Action: Tender-offer
Type: New
Accession Number: 000110465924128829
Filing Summary: On December 10, 2024, the Board of Directors of abrdn Emerging Markets Equity Income Fund, Inc. approved a name change to abrdn Emerging Markets ex-China Fund, Inc., with changes to the Fund’s investment policies effective February 24, 2025. A 20% tender offer will be initiated in the first quarter of 2025. The Fund will transition its portfolio in preparation for these changes, selling off securities misaligned with the new strategy to raise necessary cash. The Fund maintains its objective to provide current income and long-term appreciation and remains a non-diversified closed-end management investment company. Shareholders will receive 60 days’ written notice regarding the changes to the Fund’s 80% investment policy and investment objectives, strategies, and risks will be amended accordingly.
Additional details:
Tender Offer Percentage: 20%
New Fund Name: abrdn Emerging Markets ex-China Fund, Inc.
Effective Date: 2025-02-24
Benchmark: MSCI Emerging Markets ex-China Index
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