COATESVILLE, Pa.--(BUSINESS WIRE)--City of London Investment Management Company Limited (“City of London”) today responds to the announcement made on Monday, November 26, 2012, by The Greater China Fund, Inc. (“the Fund”) of an amendment to the Fund’s proposal to approve Aberdeen Asset Management Asia Limited.
City of London’s position regarding the future of the Fund has been consistent throughout the months preceding the Fund’s announcement − Shareholders should be given a right to decide the future of their Fund. Three alternative scenarios had been identified by the Fund or outside parties and were described in City of London’s public letter to the Board on October 29, 2012 as a “three way choice” for Shareholders: vote for approval of the Aberdeen investment advisory agreement; vote for merger into The JF China Region Fund, Inc.; or vote for liquidation of the Fund.
The Board chose to ignore the JFC proposal, which City of London continues to believe was an attractive option when measured by the criteria identified in our letter of September 28, 2012. In ignoring the JFC proposal, in our opinion, the Board lost any credibility regarding making any recommendation, and thus was seen by Shareholders as being ineffectual.
Shareholders are now left with two alternatives. First, if more than 75% of shares are tendered, the Fund will liquidate. Second, if less than 75% of shares are tendered, the surviving Fund would benefit from the replacement of Baring Asset Management (Asia) Ltd. by Aberdeen Asset Management Asia Limited.
City of London will tender all shares beneficially owned (approximately 35.6% of shares outstanding). With respect to the proposal to approve Aberdeen Asset Management Asia Limited, City of London has agreed to give its proxy to the Fund’s Chairman to vote shares of the Fund using “mirror voting” in order for Shareholders to decide the outcome.
City of London Investment Management Company Limited is an emerging markets fund manager which specializes in investing in closed-end investment companies and is a registered investment adviser under Section 203 of the Investment Advisers Act of 1940.