The European Equity Fund, Inc. and The New Germany Fund, Inc. Announce Commencement of Tender Offers
July 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 the commencement of self
tender offers on the terms and subject to the conditions set forth
in each Fund’s Offer to Repurchase and the related Letter of
Transmittal, which are being mailed to stockholders commencing
today.
Each Fund is offering to purchase up to 5% of its issued and
outstanding shares of common stock at a price equal to 98% of the
Fund’s 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 that the New York Stock Exchange is open for
trading. Each tender offer will terminate at 5:00 p.m. Eastern Time
on August 22, 2012, unless extended. If more than 5% of a Fund’s
issued and outstanding shares are tendered in the offer and the
Fund purchases shares in accordance with the terms of the offer, it
will purchase shares from tendering stockholders on a pro rata
basis.
Each Fund’s offer is being made in accordance with the Discount
Management Program (the “Program”) approved by the Fund’s Board of
Directors in July 2010. The Program provides for up to four,
consecutive, semi-annual tender offers, each of which will be
conducted by a Fund if its shares trade at an average discount to
NAV of more than 10% during the applicable twelve-week measurement
period.
Each tender offer referred to in this announcement will be made
only by the Offer to Repurchase and the related Letter of
Transmittal. Stockholders should read these documents carefully
when they become available to investors free of charge at the
website of the Securities and Exchange Commission (www.sec.gov).
Neither the Offer to Repurchase will be made to, nor will tenders
pursuant to the Offer to Repurchase be accepted from or on behalf
of, holders of shares in any jurisdiction in which making or
accepting the Offer to Repurchase would violate that jurisdiction’s
laws.
For more information on the tender offer, please contact the
Fund’s information agent, AST Fund Solutions, Inc. at (800)
884-4725.
For more information on EEA and GF, 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 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 NAV. 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 NAV. There can be no assurance that
the Program will be effective in reducing the Fund’s 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.
This announcement is not a recommendation, an offer to
purchase or a solicitation of an offer to sell shares of
either Fund. Each Fund is filing today with the Securities
and Exchange Commission a tender offer statement on Schedule
TO and related exhibits, including an offer to repurchase, letter
of transmittal, and other related documents. Stockholders of
a Fund should read its offer to repurchase and the tender
offer statement on Schedule TO, the letter of transmittal
and related exhibits, as they contain important information
about the Fund’s tender offer. Stockholders can obtain these
documents free of charge from the Securities and Exchange
Commission’s website at www.sec.gov. or from the Fund’s
information agent, AST Fund Solutions, Inc. at (800)
884-4725.
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-20423-5 (7/12)
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