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tendered and not withdrawn in the Tender Offer, then the Tender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.