[8-K] The European Equity Fund, Inc. Reports Material Event

Rhea-AI Filing Summary

Schedule 13D/A Amendment No. 6 for Gabelli Healthcare & Wellness Rx Trust (GRX) Preferred Shares discloses updated ownership information for multiple Gabelli-related entities and individuals.

Aggregate ownership: The Reporting Persons now hold 1,514,000 preferred shares, equal to 45.49 % of the 3,328,500 shares outstanding as of 30 Jun 2025. Key positions include:

• Associated Capital Group (AC): 400,000 shares – 12.02 %
• GAMCO Investors (GBL): 400,000 shares – 12.02 %
• Mario J. Gabelli (individual): 400,000 shares – 12.02 %
• Gabelli Foundation: 314,000 shares – 9.43 %

Recent transactions (26 Jun 2025): Several entities surrendered a total of 1,440,000 preferred shares (Series E & Series G) at $10.00 per share under the Fund’s put right to redeem up to 100 % of its outstanding cumulative preferred stock. The largest single surrender was 830,000 shares by Mario J. Gabelli.

Post-transaction, the group retains a controlling minority of the preferred class, maintaining significant influence over matters requiring preferred-shareholder approval. All reporting persons exercise sole voting and dispositive power over their respective holdings; no shared power is reported. No new legal proceedings or changes in control arrangements were disclosed.

Implications for investors: While the surrender materially reduces absolute ownership, the group’s collective stake remains large at 45 %. The buy-back at par ($10) may signal limited upside in the current preferred valuation and could affect liquidity of the remaining float. However, continued alignment of interests between the Gabelli entities and preferred shareholders persists.

Positive

• Reporting group retains a significant 45.49 % stake, ensuring continued alignment with other preferred shareholders.
• Redemption performed at full par value ($10), providing immediate liquidity to surrendering holders without discount.

Negative

• Large reduction of 1.44 million shares suggests diminished absolute commitment by Gabelli entities.
• Issuer cash outflow for redemption (details not provided) could pressure liquidity and future dividend coverage.

Insights

Securities Analyst

TL;DR: Gabelli entities cut preferred stake via fund put; still hold 45%, impact neutral.

The amendment shows a sizeable redemption—1.44 million shares—at $10.00, executed through the issuer’s contractual put right. Despite the reduction, the Gabelli complex maintains an influential 45% ownership. Redemption proceeds may reflect capital re-allocation rather than a bearish view, as the shares were put at mandatory terms, not open-market sales. No premium or discount was involved, limiting market-price signaling. Ownership concentration remains high, preserving potential board or voting leverage. Overall market impact is muted: free float increases modestly, but issuer cash outflow (not detailed here) may marginally pressure liquidity ratios. I assign a neutral (0) impact rating.

Portfolio Manager

TL;DR: Large redemption improves holder liquidity but signals par-value ceiling.

The mass surrender implies holders preferred guaranteed par value over continued yield, suggesting limited upside in GRX preferreds above $10. The issuer’s willingness (or obligation) to redeem such volume indicates adequate cash or refinancing capacity, but investors should verify balance-sheet effects in subsequent filings. Remaining Gabelli alignment (45%) still supports governance continuity. From a portfolio perspective, this event is not a catalyst for common shares but worth monitoring for preferred liquidity and future coupon coverage. Rating 0 (neutral).

EUROPEAN EQUITY FUND, INC / MD false 0000791718 0000791718 2025-05-09 2025-05-09

As filed with the Securities and Exchange Commission on July 1, 2025

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 9, 2025

THE EUROPEAN EQUITY FUND, INC.

(Exact name of registrant as specified in its charter)

Maryland		811-04632		26-0529973
(State or other Jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

875 Third Avenue

New York, NY 10022

(Address of principal executive offices)

Registrant’s telephone number, including area code: (212) 454-4500

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 8.01 OTHER EVENTS

On May 9, 2025, the Board of Directors of the Registrant approved (1) Articles of Amendment to the Registrant’s charter, which became effective June 30, 2025; and (2) Articles Supplementary regarding the Registrant’s election to no longer be subject to Section 3-803 of the Maryland General Corporation law, which became effective on June 30, 2025. The Articles of Amendment are filed as Exhibit 99.1 to this Report on Form 8-K. The Articles Supplementary are filed as Exhibit 99.2 to this Report on Form 8-K.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits.

Exhibit Number		Description
99.1		Articles of Amendment to the Registrant’s charter as filed with the State Department of Assessments and Taxation of the State of Maryland on July 1, 2025
99.2		Articles Supplementary as filed with the State Department of Assessments and Taxation of the State of Maryland on July 1, 2025

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 1, 2025				The European Equity Fund, Inc.
				/s/ John Millette
				Name:		John Millette
				Title:		Secretary

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FAQ

How many GRX preferred shares do the Gabelli entities now own?

They collectively own 1,514,000 shares, representing 45.49 % of the class.

Which entity holds the largest individual GRX preferred position?

Several entities—Associated Capital Group, GAMCO Investors, and Mario Gabelli—each hold 400,000 shares (12.02 %).

What transactions occurred on 26 June 2025?

1.44 million preferred shares were surrendered at $10.00 under the Fund’s put right, reducing the group’s stake.

Does any reporting person share voting power over GRX preferred shares?

No. All reporting persons claim sole voting and dispositive power over their respective holdings.

What percentage of GRX preferred shares is still outstanding after the redemption?

The filing references 3,328,500 shares outstanding; the group now owns 45.49 %, implying 54.51 % remains with other holders.

Why were the shares surrendered rather than sold on the market?

The surrender was executed under the Fund’s contractual right to redeem up to 100 % of its cumulative preferred shares at par.