abrdn Emerging Markets Equity Income Fund Announces Preliminary Results of Cash Tender Offer
On February 21, 2025, abrdn Emerging Markets Equity Income Fund, Inc. (AEF), a non-diversified closed-end fund trading on the NYSE American, announced the preliminary results of its cash tender offer for up to 10,150,355 shares. This represents approximately 20% of the Fund’s outstanding shares. The tender offer expired at 5:00 p.m. Eastern Time.
Preliminary Results
According to the press release, a total of 10,150,355 shares were tendered and not withdrawn during the tender offer period. The Fund’s board of directors has approved the acceptance for payment of tendered shares at a price of $11.50 per share. The tender offer was made pursuant to the Fund’s level II tender offer protocol and was not conditioned on any minimum number of shares being tendered.
Impact on Shareholders
Shareholders who tendered their shares in the tender offer will receive $11.50 per share in cash. This represents a premium of approximately 1.8% to the Fund’s net asset value per share as of February 19, 2025. The payment for tendered shares is expected to be made on or about February 26, 2025.
Impact on the World
The tender offer by abrdn Emerging Markets Equity Income Fund is not expected to have a significant impact on the global economy. However, it could potentially affect the broader emerging markets equity sector. The tender offer represents a large percentage of the Fund’s outstanding shares, and the reduction in the number of shares outstanding could lead to increased concentration of ownership and potential changes in the Fund’s investment strategy.
Conclusion
The preliminary results of the abrdn Emerging Markets Equity Income Fund’s tender offer for up to 10,150,355 shares represent a significant development for the Fund and its shareholders. Those who tendered their shares will receive $11.50 per share in cash, representing a premium to the net asset value per share. The impact on the global economy is expected to be minimal, but the reduction in the number of outstanding shares could potentially lead to changes in the Fund’s investment strategy.
- abrdn Emerging Markets Equity Income Fund announces preliminary results of cash tender offer for up to 10,150,355 shares
- Approximately 20% of outstanding shares tendered and not withdrawn
- Shareholders who tendered will receive $11.50 per share in cash
- Payment expected on or about February 26, 2025
- Impact on global economy minimal, but potential changes in Fund’s investment strategy
