Adams Diversified Equity Fund Announces Tender Offer Results

Rhea-AI Summary

Adams Diversified Equity Fund (NYSE: ADX) has announced the final results of its tender offer to purchase up to 12,405,174 common shares at $22.47 per share, which is 98% of the $22.93 net asset value per share (NAV) as of August 2, 2024. The offer was oversubscribed, with a total of 41,882,825 shares validly tendered. Due to the high demand, ADX will purchase shares on a pro rata basis with a proration factor of 29.61876%. The Fund has accepted for payment all 12,405,174 common shares subject to the tender offer, and payment for accepted shares and return of unpurchased shares will occur promptly. Shareholders with questions can contact EQ Fund Solutions, at (888) 886-4425.

Positive

• Successful completion of tender offer
• High demand for tender offer with 3.37 times oversubscription
• Purchase price of $22.47 per share, close to NAV

Negative

• Significant shareholder dilution due to large number of shares repurchased
• Only 29.61876% of tendered shares accepted due to oversubscription

BALTIMORE, Aug. 05, 2024 (GLOBE NEWSWIRE) -- Adams Diversified Equity Fund, Inc. (NYSE: ADX) announced today the final results of its offer to purchase up to 12,405,174 of its common shares at $22.47, 98% of the $22.93 net asset value per share (“NAV”) at the close of regular trading on the New York Stock Exchange on August 2, 2024, the expiration date.

Based on the final count by Equiniti Trust Company, LLC (“EQ”), the depositary for the tender offer, a total of 41,882,825 common shares of ADX were validly tendered and not withdrawn. The total amount of shares tendered exceeded the offer amount, and the Fund will purchase tendered shares on a pro rata basis, disregarding fractions. The proration factor for shares purchased pursuant to the offer is 29.61876%.

In accordance with the terms and conditions of the tender offer, ADX has accepted for payment all 12,405,174 common shares subject to the tender offer.

Payment for the shares accepted for purchase under the tender offer and return of all other shares tendered and not purchased will occur promptly.

EQ Fund Solutions, LLC is the information agent for the Offer. Shareholders with questions may call EQ Fund Solutions, LLC at (888) 886-4425.

About Adams Funds

Since 1929, Adams Funds has consistently helped generations of investors reach their investment goals. Adams Funds is comprised of two closed-end funds, Adams Diversified Equity Fund, Inc. (NYSE: ADX) and Adams Natural Resources Fund, Inc. (NYSE: PEO). The Funds are actively managed by an experienced team with a disciplined approach and have paid dividends for more than 85 years across many market cycles. The Funds are committed to paying a minimum annual distribution rate of 8% of NAV or more, providing reliable income to long-term investors. Shares can be purchased through our transfer agent or through a broker. For more information about Adams Funds, please visit: adamsfunds.com.

For further information please contact: adamsfunds.com/about/contact or 800.638.2479

Statements in this press release that are not historical facts are “forward-looking statements” as defined by the U.S. securities laws. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to uncertainties and other factors which are, in some cases, beyond the Fund’s control and could cause actual results to differ materially from those set forth in the forward-looking statements. All forward-looking statements are as of the date of this release only; the Fund undertakes no obligation to update or review any forward-looking statements.

FAQ

What was the final result of Adams Diversified Equity Fund's (ADX) tender offer?

ADX accepted 12,405,174 common shares at $22.47 per share, which was 98% of the NAV on August 2, 2024. The offer was oversubscribed, with 41,882,825 shares tendered, resulting in a proration factor of 29.61876%.

How many shares were tendered in ADX's tender offer on August 5, 2024?

A total of 41,882,825 common shares of ADX were validly tendered and not withdrawn in the tender offer announced on August 5, 2024.

What was the proration factor for ADX's tender offer in August 2024?

The proration factor for shares purchased pursuant to ADX's tender offer was 29.61876%, due to the offer being oversubscribed.

What was the purchase price per share in ADX's tender offer?

The purchase price was $22.47 per share, which was 98% of the $22.93 net asset value per share (NAV) at the close of regular trading on August 2, 2024.