Delaware Investments Global Dividend & Income Fund, Inc. & Delaware Enhanced Global Dividend & Income Fund Announce Proposed ...
May 19 2011 - 5:19PM
Business Wire
The Board of Directors of Delaware Investments Global Dividend
and Income Fund, Inc. (NYSE: DGF) ("DGF") and the Board of Trustees
of Delaware Enhanced Global Dividend and Income Fund (NYSE: DEX)
("DEX") today announced their decision to approve a proposal
providing for the reorganization of DGF into DEX. Under the terms
of the proposed reorganization, DEX would acquire substantially all
of DGF's assets in exchange for newly issued shares of common
beneficial interest of DEX. Those shares of DEX would then be
distributed pro rata to DGF's shareholders, and DGF would
subsequently be liquidated and dissolved. Common shares of DGF
would be exchanged for common shares of DEX based on the relative
net asset values of each Fund’s common shares. These transactions,
which are expected to be tax-free, are subject to the approval of
the Agreement and Plan of Acquisition by each Fund’s
shareholders.
Each Fund’s Board plans to submit the proposals described above
to each Fund’s shareholders at a special meeting, currently
expected to take place on September 21, 2011. Any solicitation of
proxies by each Fund in connection with this shareholder meeting
will be made only pursuant to proxy materials filed under the
federal securities laws. It is anticipated that these proxy
materials will be distributed to each Fund’s shareholders in July
2011. There can be no assurance that the shareholders of each Fund
will vote in favor of the proposals.
Each Fund is a closed-end fund managed by Delaware Management
Company, a series of Delaware Management Business Trust. The
investment objective of DGF is to seek high current income; capital
appreciation is a secondary objective. The investment objective of
DEX is to seek current income; capital appreciation is a secondary
objective. Each Fund has the ability to utilize leveraging
techniques in an attempt to obtain a higher return for the Fund. At
present, each Fund maintains a line of credit with The Bank of New
York Mellon, which is utilized by the Funds for leveraging
purposes. If the merger is approved, it is anticipated that the
surviving Fund will continue to utilize leverage under a line of
credit following the close of the transaction. As of April 30,
2011, the total net assets of DGF and DEX were approximately $39.3
million and $178.5 million, respectively.
In connection with the proposed transactions, each Fund intends
to file relevant materials with the U.S. Securities and Exchange
Commission (the “SEC”), including a combined proxy statement for
each Fund and a Form N-14 registration statement for DEX that will
contain a prospectus. Because those documents will contain
important information, each Fund’s shareholders are urged to read
them carefully when they become available. When filed with the SEC,
those documents will be available free of charge at the SEC’s
website, www.sec.gov. Each Fund’s shareholders will also be able to
obtain copies of these documents and other transaction-related
documents, when available, by calling Delaware Investments
toll-free at 800 523-1918. The foregoing is not an offer to sell,
nor a solicitation of an offer to buy, shares of any fund, nor is
it a solicitation of any proxy.
About Delaware Investments
Delaware Investments, a member of Macquarie Group, is a
U.S.-based diversified asset management firm with more than $150
billion in assets under management (as of March 31, 2011). Through
a team of talented investment professionals, the firm manages
assets across all major asset classes for a wide range of
institutional and individual investors. Delaware Investments is
supported by the resources of Macquarie Group (ASX: MQG; ADR:
MQBKY), a global provider of asset management, investment, banking,
financial and advisory services with approximately US $321 billion
in assets under management as of March 31, 2011.
Delaware Investments is the marketing name for Delaware
Management Holdings, Inc. and its subsidiaries. Macquarie Group
refers to Macquarie Group Limited and its subsidiaries and
affiliates worldwide. For more information, visit
www.delawareinvestments.com or for shareholder-related questions,
call 800 523-1918.
Investments in the Funds are not and will not be deposits with
or liabilities of Macquarie Bank Limited ABN 46 008 583 542 and its
holding companies, including their subsidiaries or related
companies, and are subject to investment risk, including possible
delays in repayment and loss of income and capital invested. No
Macquarie Group company guarantees or will guarantee the
performance of the Funds, the repayment of capital from the Funds,
or any particular rate of return.
© 2011 Delaware Management Holdings, Inc.
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