abrdn Emerging Markets Ex-China Fund, Inc. (AEF) Announces Final Results of Cash Tender Offer

Rhea-AI Summary

abrdn Emerging Markets ex-China Fund (AEF) has completed its cash tender offer, purchasing 10,150,355 shares (20% of outstanding shares) at $6.07 per share, representing 98% of NAV as of February 21, 2025. The tender was oversubscribed with 72.4% of shares tendered, resulting in a proration ratio of approximately 0.27624999.

Following the purchase, AEF will have 40,601,423 outstanding shares. Effective February 24, 2025, the Fund has implemented a new investment strategy, requiring at least 80% of net assets to be invested in emerging markets equity securities, excluding China.

The Board has committed to conduct another 20% tender offer by June 30, 2028, if the Fund's NAV-based total return performance does not match or exceed the MSCI Emerging Markets ex-China Index between March 1, 2025, and February 28, 2028.

Positive

• Successful completion of 20% share buyback at 98% of NAV
• Strong shareholder interest with 72.4% of shares tendered
• Performance-linked commitment for additional 20% tender offer by 2028

Negative

• Significant oversubscription led to low proration ratio of 0.27624999
• Shareholders only able to sell about 27.6% of tendered shares

PHILADELPHIA, PA / ACCESS Newswire / February 25, 2025 / abrdn Emerging Markets Equity ex-China Fund, Inc. (formerly, abrdn Emerging Markets Equity Income Fund, Inc.) (NYSE American:AEF), announced today the final results of its cash tender for up to 10,150,355 shares, representing approximately 20% of the Fund's outstanding shares. The offer expired at 5:00 p.m. New York City time on February 20, 2025.

Based on information provided by Computershare Trust Company N.A., the depositary of the tender offer, approximately 36,746,773 shares of common stock or 72.4% of the Fund's outstanding stock were properly tendered, and the Fund has accepted, subject to adjustment for fractional shares, 10,150,355 shares for cash payment at a price equal to $6.07, which represents 98% of the Fund's net asset value per share ("NAV") as of the close of regular trading on the NYSE American on February 21, 2025. Since the total number of shares tendered exceeded the number of shares the Fund offered to purchase, all tenders of shares were subject to proration (at a ratio of approximately 0.27624999) in accordance with the terms of the tender offer. Following the purchase of the properly tendered shares, the Fund will have 40,601,423 outstanding shares.

Effective February 24, 2025, under normal circumstances, the Fund now invests at least 80% of its net assets (plus any borrowings for investment purposes) in emerging markets (excluding China) equity securities and the Fund's name was changed. As part of the Board's commitment to shareholders relating to the investment strategy changes, the Board has adopted a policy (the "Policy") pursuant to which it will cause the Fund to conduct a one-time tender offer for twenty percent (20%) of its then issued and outstanding shares of common stock on or before June 30, 2028, if the Fund's total return investment performance measured on a NAV basis does not equal or exceed the total return investment performance of the MSCI Emerging Markets ex-China Index (Net Daily Total Return) during the period commencing on March 1, 2025 and ending on February 28, 2028. The price at which shares are to be tendered and other terms and conditions of such tender offer would be determined by the Board in its discretion based on its review and consideration of the then-current size of the Fund, market conditions and other factors it deems relevant.

For more insights into the updated investment strategy, listen to the recent podcast interview with Portfolio Manager Nick Robinson available on the Fund's website.

Important Information

The Fund's daily NYSE American closing price and NAV, as well as other information, including updated portfolio statistics and performance are available at www.abrdnaef.com or by calling the Fund's Investor Relations at 1-800-522-5465.

In the United States, abrdn is the marketing name for the following affiliated, registered investment advisers: abrdn Inc., abrdn Investments Limited, and abrdn Asia Limited.

Closed-end funds are traded on the secondary market through one of the stock exchanges. A Fund's investment return and principal value will fluctuate so that an investor's shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the NAV of the fund's portfolio. There is no assurance that a Fund will achieve its investment objective. Past performance does not guarantee future results.

abrdnaef.com

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For More Information Contact:

abrdn U.S. Closed-End Funds
Investor Relations
1-800-522-5465
Investor.Relations@abrdn.com

SOURCE: abrdn Emerging Markets ex-China Fund, Inc.

View the original press release on ACCESS Newswire

FAQ

What was the tender offer price per share for AEF's February 2025 buyback?

AEF's tender offer price was $6.07 per share, representing 98% of the Fund's NAV as of February 21, 2025.

How many shares were tendered in AEF's February 2025 buyback?

Approximately 36,746,773 shares (72.4% of outstanding stock) were tendered, with the Fund accepting 10,150,355 shares.

What is AEF's new investment strategy as of February 24, 2025?

AEF now invests at least 80% of net assets in emerging markets equity securities, excluding China investments.

What is the condition for AEF's promised 2028 tender offer?

AEF will conduct another 20% tender offer by June 30, 2028, if the Fund's performance doesn't match or exceed the MSCI Emerging Markets ex-China Index from March 1, 2025, to February 28, 2028.