ABRDN GLOBAL INCOME FUND, INC. ("FCO") ANNOUNCES A PROPOSED MERGER INTO ABRDN ASIA-PACIFIC INCOME FUND ("FAX")

Rhea-AI Summary

abrdn Global Income Fund (NYSE American: FCO) and abrdn Asia-Pacific Income Fund (NYSE American: FAX) have announced a proposed merger, where FCO will merge into FAX. The Boards of Directors of both funds have approved the reorganization, which requires FCO shareholder approval but not FAX shareholder approval.

The merger is scheduled for a shareholder vote on December 10, 2025, with a record date of September 11, 2025. The transaction is intended to be structured as a tax-free reorganization for U.S. federal income tax purposes. Notably, there will be no changes to FAX's current investment objectives or policies as a result of the merger.

Positive

• None.

Negative

• FCO shareholders must approve the merger, creating execution risk
• Potential portfolio adjustments may be needed to align with surviving fund

Insights

Investment Fund Analyst

FCO's merger into FAX should create a larger, more efficient fund with potential benefits for both funds' shareholders.

The proposed merger between abrdn Global Income Fund (FCO) and abrdn Asia-Pacific Income Fund (FAX) represents a significant fund consolidation event. This transaction, with FCO being absorbed into FAX, aims to create a larger, more efficient investment vehicle. The unanimous approval from both funds' Boards suggests they see clear benefits to this consolidation.

The merger likely aims to achieve economies of scale, which could potentially reduce the expense ratio for the combined entity. For closed-end funds, larger asset bases typically allow for more efficient operations, spreading fixed costs across a wider capital base. FAX shareholders won't need to vote on the transaction, while FCO shareholders will vote at a special meeting targeted for December 10, 2025.

From a tax perspective, the reorganization is structured to be tax-free for U.S. federal income tax purposes, which is favorable for FCO shareholders who won't face immediate tax consequences from the transaction. This tax-efficient structure is a standard approach for fund mergers designed to minimize disruption to shareholders.

The press release notably indicates no changes to FAX's current objectives or policies, suggesting FCO shareholders will be transitioning into a fund with an Asia-Pacific focus, potentially altering their investment exposure depending on FCO's current mandate. The completion timeline appears to be relatively standard for fund mergers, with approximately three months between record date and shareholder vote.

PHILADELPHIA, Sept. 11, 2025 /PRNewswire/ -- The Boards of Directors of abrdn Global Income Fund, Inc. (NYSE American: FCO) (the "Acquired Fund") and abrdn Asia-Pacific Income Fund, Inc. (NYSE American: FAX) (the "Acquiring Fund") announce today that each have approved the merger of FCO into FAX (the "Reorganization"). The proposed Reorganization is subject to the receipt of necessary Acquired Fund shareholder approvals.

There are no proposed changes to the current objectives or policies of FAX as a result of the Reorganization. Individually, each Fund's Board believes that the Reorganization is in the best interest of their Fund's shareholders. The Reorganization is intended to be treated as tax-free reorganization for U.S. federal income tax purposes.

Additional information regarding the Reorganization will be presented in a prospectus/proxy statement to be sent to FCO shareholders (the "Proxy Statement"). FCO shareholders of record on September 11, 2025 will be asked to vote on the Reorganization at a special shareholder meeting currently targeted for December 10, 2025.

Shareholders of FAX are not required to vote on the issuance of shares in connection with the Reorganization.

The Proxy Statement has yet to be filed with the U.S. Securities and Exchange Commission (the "SEC"). After the Proxy Statement is filed with the SEC, it may be amended or withdrawn. The Proxy Statement will not be distributed to shareholders of the Acquired Fund unless and until a Registration Statement comprised of the Proxy Statement is declared effective by the SEC.

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

The information in this press release is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities or the solicitation of any vote or approval in any jurisdiction pursuant to or in connection with the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

In connection with the proposed combination, the Acquired Fund and the Acquiring Fund plan to file with the SEC a combined prospectus/proxy statement. When the prospectus/proxy statement becomes available, shareholders are advised to read it because it will contain important information about the proposed transaction and related matters. The prospectus/proxy statement, when available, will be available for free at the SEC's website www.sec.gov. 

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.

Closed-End Funds | Aberdeen 

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SOURCE Aberdeen Investments U.S. Closed End Funds

FAQ

What is the proposed merger between FCO and FAX?

abrdn Global Income Fund (FCO) will merge into abrdn Asia-Pacific Income Fund (FAX), with FAX continuing as the surviving fund. The merger requires FCO shareholder approval and is intended to be tax-free.

When will FCO shareholders vote on the merger with FAX?

FCO shareholders of record as of September 11, 2025 will vote on the merger at a special shareholder meeting scheduled for December 10, 2025.

Do FAX shareholders need to vote on the merger with FCO?

No, FAX shareholders are not required to vote on the issuance of shares in connection with the reorganization.

Will FAX's investment objectives change after the merger with FCO?

No, there are no proposed changes to FAX's current objectives or policies as a result of the reorganization.

What are the tax implications of the FCO and FAX merger?

The reorganization is intended to be treated as a tax-free reorganization for U.S. federal income tax purposes.