City of London Investment Management Company Limited Announces That It Will Not Participate in the Previously Announced Tender Offer for Shares of GCH
City of London Investment Management Company Limited has been made aware by an independent third party of a proposal wherein the assets of The Greater China Fund, Inc. (Ticker: GCH) would be merged into JF China Region Fund, Inc. (Ticker: JFC). City of London understands that repeated attempts have been made by representatives of the Board of JFC to present this proposed merger to the Board of GCH, but believes that these attempts have thus far been unsuccessful.
GCH Tender Offer
City of London is making this public announcement in light of the upcoming closing of the tender offer for shares of GCH. The Fund’s offer is to repurchase up to 6,067,002 (20%) of its outstanding shares @ 98% of NAV, as determined by the Fund on October 17, expires on October 14, 2011.
JFC / GCH Merger
City of London believes that, as part of the proposed merger, JF China Region Fund, Inc. would acquire the shares of The Greater China Fund, Inc. in a NAV-for-NAV swap, and understands that the merger would be followed by a 50% tender offer of the shares of the combined entity at close to NAV.
CLIM Position regarding this transaction
City of London would support this merger proposal as a way of reducing the over-supply of US Chinese Closed End Fund product in the marketplace and to mitigate the effects of the rights offering conducted by GCH last year at a point where the Fund’s shares were trading at a substantial discount. City of London previously announced publicly (on February 23, 2011) that it might propose termination of GCH’s investment advisory contract as part of the Fund’s 2012 proxy process. We continue to reserve the right to pursue that option.
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.
City of London Investment Management Company Limited
Jeremy Bannister, 610-380-3614