The European Equity Fund, Inc. & The New Germany Fund, Inc. Announce Next Measurement Period & The European Equity Fund, Inc....
December 03 2010 - 4:05PM
Business Wire
The European Equity Fund, Inc. (NYSE: EEA) and The New
Germany Fund, Inc. (NYSE: GF) (each, a "Fund," and,
collectively, the "Funds") announced that the next measurement
period will commence on March 7, 2011 and will expire on May 27,
2011. The measurement period is being set in accordance with the
terms of each Fund’s previously announced Discount Management
Program (the “Program”). Pursuant to the Program, each Fund’s Board
of Directors approved a series of up to four, consecutive,
semi-annual tender offers each for up to 5% of the Fund’s
outstanding shares of common stock at a price equal to 98% of net
asset value ("NAV") if the Fund’s shares trade at an average
discount to NAV of more than 10% during the applicable twelve-week
measurement period.
In accordance with the Program, the Board of Directors of EEA
has approved a cash tender offer for up to 5% of the Fund’s
outstanding shares at a price per share equal to 98% of NAV as of
the close of the regular trading session of the New York Stock
Exchange on the next business day after the day the offer expires.
If more than 5% of the Fund’s outstanding shares are tendered in
the offer, the Fund will purchase shares from tendering
shareholders on a pro rata basis. Subject to the Board’s exercise
of its fiduciary duties, the tender offer will commence on or about
January 7, 2011 and will remain open through February 8, 2011,
unless extended. There can be no assurance that the tender offer
will reduce the spread between the market price of EEA’s shares and
the NAV per share.
For more information on GF or EEA, including the most recent
month-end performance, visit www.dws-investments.com or call (800)
349-4281.
The European Equity Fund, Inc. is a diversified, closed-end
investment company seeking long-term capital appreciation through
investment primarily (normally at least 80% of its assets) in
equity and equity-linked securities of companies domiciled in
European countries utilizing the Euro currency. Investing in
foreign securities, particularly those of emerging markets,
presents certain risks, such as currency fluctuations, political
and economic changes, and market risks. Any fund that concentrates
in a particular segment of the market will generally be more
volatile than a fund that invests more broadly.
The New Germany Fund, Inc. is a diversified, closed-end
investment company seeking capital appreciation primarily through
investment in the Mittelstand – an important group of
small and mid-cap German companies. The Fund may invest up
to 35% of its assets in large cap German companies, and up to 20%
in other Western European companies. Investing in foreign
securities presents certain risks, such as currency fluctuations,
political and economic changes, and market risks. Any fund that
concentrates in a particular segment of the market will generally
be more volatile than a fund that invests more broadly.
Closed-end funds, unlike open-end funds, are not continuously
offered. There is a one-time public offering and once issued,
shares of closed-end funds are sold in the open market through a
stock exchange. Shares of closed-end funds frequently trade at a
discount to the net asset value. The price of a fund’s shares is
determined by a number of factors, several of which are beyond the
control of the fund. Therefore, a fund cannot predict whether its
shares will trade at, below or above net asset value. There can be
no assurance that the Program will be effective in reducing the
Funds’ market discounts.
Investments in funds involve risk. Additional risks are
associated with international investing, such as government
regulations and differences in liquidity which may increase the
volatility of your investment. Foreign security markets generally
exhibit greater price volatility and are less liquid than the US
market. Additionally, this fund focuses its investments in certain
geographical regions, thereby increasing its vulnerability to
developments in that region and potentially subjecting the fund’s
shares to greater price volatility. Some funds have more risk than
others. These include funds that allow exposure to or otherwise
concentrate investments in certain sectors, geographic regions,
security types, market capitalization or foreign securities (e.g.,
political or economic instability, which can be accentuated in
emerging market countries).
This press release shall not constitute an offer to sell or a
solicitation to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer or
solicitation or sale would be unlawful prior to registration or
qualification under the laws of such state or jurisdiction.
This announcement is not a recommendation, an offer to
purchase or a solicitation of an offer to sell shares of either
fund. EEA has not commenced the self-tender offer described in this
press release. Upon commencement of a tender offer, EEA will
file with the Securities and Exchange Commission a tender offer
statement on Schedule TO and related exhibits, including an offer
to purchase, letter of transmittal, and other related documents.
Shareholders of EEA should read the offer to purchase and
the tender offer statement on Schedule TO and related exhibits when
such documents are filed and become available, as they will contain
important information about that fund’s tender offer. Shareholders
can obtain the offer to purchase and the tender offer statement on
Schedule TO and related exhibits when they are filed and become
available free of charge from the Securities and Exchange
Commission’s website at www.sec.gov.
Certain statements contained in this release may be
forward-looking in nature. These include all statements relating to
plans, expectations, and other statements that are not historical
facts and typically use words like “expect,” “anticipate,”
“believe,” “intend,” and similar expressions. Such statements
represent management’s current beliefs, based upon information
available at the time the statements are made, with regard to the
matters addressed. All forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ
materially from those expressed in, or implied by, such statements.
Management does not undertake any obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events, or otherwise.
NOT FDIC/ NCUA INSURED • MAY LOSE VALUE • NO
BANK GUARANTEENOT A DEPOSIT • NOT INSURED BY ANY FEDERAL
GOVERNMENT AGENCY
DWS Investments is part of Deutsche Bank’s Asset Management
division and, within the US, represents the retail asset management
activities of Deutsche Bank AG, Deutsche Bank Trust Company
Americas, Deutsche Investment Management Americas Inc. and DWS
Trust Company. R-18308-3 (12/10)
European Equity (NYSE:EEA)
Historical Stock Chart
From May 2024 to Jun 2024
European Equity (NYSE:EEA)
Historical Stock Chart
From Jun 2023 to Jun 2024