Adams Diversified Equity Fund Announces Preliminary Tender Offer Results
Adams Diversified Equity Fund (NYSE: ADX) has announced the preliminary results of its tender offer to purchase up to 12,405,174 common shares at $22.47 per share, which is 98% of the $22.93 net asset value per share (NAV) as of August 2, 2024. The tender offer, which expired on August 2, 2024, was significantly oversubscribed with 41,882,825 shares validly tendered. Due to the oversubscription, ADX expects to purchase shares on a pro rata basis, accepting all 12,405,174 shares subject to the offer. The final proration factor will be announced after the confirmation process by the depositary, Equiniti Trust Company, Payment for accepted shares and return of unpurchased shares will occur promptly thereafter.
Il Adams Diversified Equity Fund (NYSE: ADX) ha annunciato i risultati preliminari della sua offerta pubblica di acquisto per un massimo di 12.405.174 azioni ordinarie a $22,47 per azione, pari al 98% del valore netto degli attivi per azione (NAV) di $22,93 al 2 agosto 2024. L'offerta pubblica di acquisto, scaduta il 2 agosto 2024, è stata notevolmente sovrascritta con 41.882.825 azioni validamente offerte. A causa della sovrascrittura, ADX prevede di acquistare azioni su base proporzionale, accettando tutte le 12.405.174 azioni oggetto dell'offerta. Il fattore di proporzionalità finale sarà annunciato dopo il processo di conferma da parte del depositario, Equiniti Trust Company. Il pagamento per le azioni accettate e la restituzione delle azioni non acquistate avverrà tempestivamente dopo.
El Adams Diversified Equity Fund (NYSE: ADX) ha anunciado los resultados preliminares de su oferta pública de compra de hasta 12,405,174 acciones ordinarias a $22.47 por acción, lo que representa el 98% del valor neto de los activos por acción (NAV) de $22.93 a partir del 2 de agosto de 2024. La oferta pública, que expiró el 2 de agosto de 2024, fue significativamente sobreecrita, con 41,882,825 acciones válidamente ofrecidas. Debido a la sobreecritura, ADX espera comprar acciones en una base proporcional, aceptando todas las 12,405,174 acciones sujetas a la oferta. El factor de prorrateo final será anunciado tras el proceso de confirmación por parte del depositario, Equiniti Trust Company. El pago por acciones aceptadas y la devolución de las acciones no compradas se realizará de manera puntual después.
아담스 다이버시파이드 에쿼티 펀드(NYSE: ADX)가 2024년 8월 2일 기준으로 주당 $22.93의 순자산 가치(NAV)의 98%에 해당하는 주당 $22.47에 최대 12,405,174주의 보통주를 매수하기 위한 입찰 제안의 잠정 결과를 발표했습니다. 2024년 8월 2일에 만료된 이 입찰 제안은 유효하게 제출된 41,882,825주의 주식으로 상당히 초과 접수되었습니다. 초과 접수로 인해, ADX는 제안된 12,405,174주의 모든 주식을 비례 배분 방식으로 구매할 것으로 예상합니다. 최종 배분 비율은 수탁자 Equiniti Trust Company의 확인 절차 후에 발표될 것입니다. 수락된 주식의 대금 지급과 미구매 주식의 반환은 이후 신속하게 이루어질 것입니다.
Le Adams Diversified Equity Fund (NYSE: ADX) a annoncé les résultats préliminaires de son offre publique d'achat visant à acquérir jusqu'à 12.405.174 actions ordinaires au prix de 22,47 $ par action, ce qui représente 98 % de la valeur nette d'actifs par action (NAV) de 22,93 $ au 2 août 2024. L'offre a expiré le 2 août 2024 et a été largement sursouscrite, avec 41.882.825 actions validement proposées. En raison de cette sursouscription, ADX prévoit d'acheter les actions sur une base pro rata, acceptant toutes les 12.405.174 actions soumises à l'offre. Le facteur de prorata final sera annoncé après le processus de confirmation par le dépositaire, Equiniti Trust Company. Le paiement des actions acceptées et le retour des actions non achetées seront effectués sans tarder par la suite.
Der Adams Diversified Equity Fund (NYSE: ADX) hat die vorläufigen Ergebnisse seines Angebots zur Rückkauf von bis zu 12.405.174 Stammaktien zu einem Preis von 22,47 $ pro Aktie bekannt gegeben, was 98 % des Nettowerts der Aktiven pro Aktie (NAV) von 22,93 $ zum 2. August 2024 entspricht. Das Angebot, das am 2. August 2024 abgelaufen ist, war signifikant überzeichnet und es wurden 41.882.825 Aktien gültig angeboten. Aufgrund der Überzeichnung erwartet ADX, die Aktien anteilig zu kaufen und alle 12.405.174 Aktien, die dem Angebot unterliegen, zu akzeptieren. Der endgültige Verteilungsschlüssel wird nach dem Bestätigungsprozess des Depotbank, Equiniti Trust Company, bekannt gegeben. Die Zahlung für akzeptierte Aktien und die Rückgabe der nicht gekauften Aktien wird anschließend umgehend erfolgen.
- Tender offer was significantly oversubscribed, indicating strong shareholder interest
- Fund is repurchasing shares at a 2% discount to NAV, potentially benefiting remaining shareholders
- Pro-rata acceptance may result in partial fulfillment of individual shareholder tender requests
- Large-scale share repurchase could potentially reduce the fund's assets under management
Insights
The tender offer results for Adams Diversified Equity Fund (ADX) reveal significant investor interest, with 41,882,825 shares tendered, far exceeding the 12,405,174 shares the fund offered to purchase. This 3.38x oversubscription suggests strong shareholder desire for liquidity or potential dissatisfaction with the fund's performance or strategy.
The
This tender offer will result in a
The overwhelming response to ADX's tender offer signals broader market dynamics. In a period of economic uncertainty, closed-end fund investors are increasingly seeking exit opportunities, especially when presented at a premium to market prices.
This trend could pressure other closed-end funds to consider similar actions to narrow their discounts to NAV. The 3.38x oversubscription rate for ADX might encourage activist investors to push for larger tender offers or even fund liquidations in the sector.
Moreover, the substantial cash outflow from ADX could lead to portfolio rebalancing, potentially impacting the prices of its underlying holdings. Investors should watch for any unusual trading volumes in ADX's major positions in the coming weeks.
BALTIMORE, Aug. 05, 2024 (GLOBE NEWSWIRE) -- Adams Diversified Equity Fund, Inc. (NYSE: ADX) announced today the preliminary results of its offer to purchase up to 12,405,174 of its common shares at
Based on the preliminary count by Equiniti Trust Company, LLC (“EQ”), the depositary for the tender offer, a total of 41,882,825 common shares of ADX were validly tendered and not withdrawn. The total amount of shares tendered exceeded the offer amount, and the Fund expects to purchase tendered shares on a pro rata basis.
In accordance with the terms and conditions of the tender offer and based on the preliminary count by EQ, ADX expects to accept for payment all 12,405,174 common shares subject to the tender offer.
The preliminary information contained in this press release is subject to confirmation by EQ. The final proration factor will be announced following completion by EQ of the confirmation process. Payment for the shares accepted for purchase under the tender offer and return of all other shares tendered and not purchased will occur promptly thereafter.
EQ Fund Solutions, LLC is the information agent for the Offer. Shareholders with questions may call EQ Fund Solutions, LLC at (888) 886-4425.
About Adams Funds
Since 1929, Adams Funds has consistently helped generations of investors reach their investment goals. Adams Funds is comprised of two closed-end funds, Adams Diversified Equity Fund, Inc. (NYSE: ADX) and Adams Natural Resources Fund, Inc. (NYSE: PEO). The Funds are actively managed by an experienced team with a disciplined approach and have paid dividends for more than 85 years across many market cycles. The Funds are committed to paying a minimum annual distribution rate of
For further information please contact: adamsfunds.com/about/contact or 800.638.2479
Statements in this press release that are not historical facts are “forward-looking statements” as defined by the U.S. securities laws. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to uncertainties and other factors which are, in some cases, beyond the Fund’s control and could cause actual results to differ materially from those set forth in the forward-looking statements. All forward-looking statements are as of the date of this release only; the Fund undertakes no obligation to update or review any forward-looking statements.
FAQ
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