1. Proposed reorganization of FCO into FAX set for March 2026 shareholder vote. 2. Reorganization aims to maintain current investment policies of FAX. 3. Proxy statement issuance delayed by federal government shutdown. 4. Tax-free treatment expected for the reorganization if approved. 5. Shareholders of FAX are not required to vote on this reorganization.
FAQ
Why Bullish?
The reorganization is positioned positively for FAX, enhancing investor interest. Past reorganizations in similar closed-end funds have often led to price appreciation.
How important is it?
The planned reorganization and tax-free designation could attract investors, influencing FAX's market perception positively.
Why Long Term?
Impact will likely manifest as the reorganization progresses, possibly stabilizing and enhancing share value over time.
ABRDN Global Income Fund, Inc. (FCO) Sets Date for Shareholder Meeting on Proposed Merger with ABRDN Asia-Pacific Income Fund, Inc. (FAX)
ABRDN Global Income Fund, Inc. (NYSE American: FCO) has announced a record date for the upcoming shareholder meeting to discuss the proposed merger into ABRDN Asia-Pacific Income Fund, Inc. (NYSE American: FAX). Shareholders of record as of December 12, 2025, will be invited to vote on this significant reorganization during a special meeting scheduled for March 12, 2026.
Details of the Proposed Reorganization
A proxy statement regarding the merger has already been filed with the U.S. Securities and Exchange Commission (SEC) on September 17, 2025. The distribution of this statement was initially delayed due to a federal government shutdown, but it will be sent out to shareholders once it is declared effective by the SEC.
Under the provisions of the proposed merger, the investment objectives and policies of FAX will remain unchanged. The Board of each fund believes that this reorganization serves the best interests of their respective shareholders. This process is expected to qualify as a tax-free reorganization for federal income tax purposes, with completion anticipated in the second quarter of 2026.
Shareholder Voting Requirements and Additional Information
Importantly, shareholders of FAX will not be required to vote on the reorganization. The current timeline indicates that the Proxy Statement will not be distributed to FCO shareholders until the SEC formally declares it effective. This declaration could include amendments or withdrawals of the statement.
About Aberdeen Investments
Aberdeen Investments Global serves as the trade name for Aberdeen's investment management business, encompassing registered advisers such as abrdn Inc., abrdn Investments Limited, and abrdn Asia Limited. Recognized as one of the world's largest asset management firms, Aberdeen has a strong legacy in managing closed-end funds dating back to the 1980s. As of September 30, 2025, the firm had over $515 billion in assets under management, including 15 U.S. closed-end funds and 13 non-U.S. closed-end funds with a total of $26.1 billion in assets.
Important Disclaimer
The information provided in this release is for informational purposes only and does not constitute an offer to sell or a solicitation of offers to buy any securities. No transactions will occur in jurisdictions that contravene applicable law. A combined prospectus/proxy statement will be filed with the SEC regarding the proposed merger, and shareholders are strongly advised to read it upon availability, as it will feature crucial information concerning the transaction.
Investors should also note that closed-end funds can trade on the secondary market at prices that may differ from their net asset values (NAV), subjecting investors to potential losses. There is no guarantee that any closed-end fund, including those represented by the stock symbol FAX, will achieve its respective investment objectives.