The European Equity Fund, Inc. and The New Germany Fund, Inc. Announce Upcoming Tender Offers
June 25 2012 - 4:10PM
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 in accordance with each
Fund’s Discount Management Program (the “Program”), the Board of
Directors of each Fund approved a cash tender offer for up to 5% of
its issued and outstanding shares of common stock at a price equal
to 98% of its net asset value (“NAV”) per share as determined by
the Fund on the next business day after the date on which the offer
expires. Each Fund normally calculates its NAV per share at 11:30
a.m. New York Time on each day during which the New York Stock
Exchange is open for trading. If more than 5% of a Fund’s
outstanding shares are tendered in the offer and the Fund purchases
shares in accordance with the terms of the tender offer, the Fund
will purchase shares from tendering stockholders on a pro rata
basis. Subject to the Board’s exercise of its fiduciary duties, the
tender offer will commence on or about July 25, 2012 and will
remain open through August 22, 2012, unless extended. There can be
no assurance that a Fund’s tender offer will reduce the spread
between the market price of the Fund’s shares and its NAV per
share.
For more information on EEA or GF, including the most recent
month-end performance, visit www.dws-investments.com or call (800)
349-4281 or 00-800-2287-2750 from outside the US.
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 or 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 equity or equity-linked securities 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 bought and 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, these funds focus their investments in
certain geographical regions, thereby increasing their
vulnerability to developments in that region and potentially
subjecting the funds’ 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. Neither Fund has commenced its self-tender offer
described in this press release. Upon commencement of a
Fund’s tender offer, the Fund will file with the Securities and
Exchange Commission a tender offer statement on Schedule TO and
related exhibits, including an offer to purchase, a letter of
transmittal, and other related documents. Stockholders of
the applicable Fund 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 the Fund’s tender offer.
Stockholders 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 GUARANTEE
NOT 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-028259-1 (6/12)
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