The European Equity Fund, Inc. & The New Germany Fund, Inc. Announce Next Tender Offer Measurement Period & Extension of Shar...
July 18 2012 - 4:15PM
Business Wire
The European Equity Fund, Inc. (NYSE: EEA) and The New
Germany Fund, Inc. (NYSE: GF) (each a “Fund”) announced today
that each Fund’s next measurement period will commence on Monday,
September 10, 2012 and will expire on Friday, November 30, 2012.
The measurement period is being set in accordance with the terms of
each Fund’s previously announced Discount Management Program that
its Board of Directors approved in January 2012 (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 addition, The Central Europe and Russia Fund, Inc. (NYSE:
CEE) (also a “Fund” and collectively with EEA and GF, the
“Funds”) announced today that after consideration of the votes
received on a stockholder proposal presented at CEE’s Annual
Meeting of Stockholders, the Board of Directors also has authorized
a Program. Pursuant to the Program, the 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 NAV. CEE will conduct a tender offer if its
shares trade at an average discount to NAV of more than 10% during
the applicable twelve-week measurement period. The first
measurement period also will commence on Monday, September 10, 2012
and will expire on Friday, November 30, 2012.
Further, each Fund announced today that its Board of Directors
has approved an extension of the current repurchase authorization
permitting EEA, GF and CEE to repurchase up to 550,000, 900,000 and
700,000 shares, respectively, during the period from August 1, 2012
through July 31, 2013. Repurchases will be made from time to time
when they are believed to be in the best interests of a Fund.
Important Information
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.
The Central Europe and Russia Fund, Inc. is a
non-diversified, closed-end investment company seeking long term
capital appreciation through investment primarily in equity or
equity-linked securities of issuers domiciled in Central Europe and
Russia. This fund is non-diversified and can take larger positions
in fewer issues, increasing its potential risk. Investing in
foreign securities presents certain risks, such as currency
fluctuations, political and economic changes, and market risks. Any
fund that focuses 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, the 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.
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-026192-3 (7/12)
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