Adams Natural Resources Fund Announces Preliminary Tender Offer Results

Rhea-AI Summary

Adams Natural Resources Fund (NYSE: PEO) announced preliminary results for its tender offer to purchase up to 5,955,676 common shares at $11.95, reflecting 95% of the $12.58 NAV as of September 4, 2020. A total of 9,454,445 shares were validly tendered, exceeding the offer amount, leading to a pro rata purchase of shares. PEO expects to accept all shares subject to the offer, with payment processing to follow. The final proration factor will be confirmed post the guaranteed delivery period, ensuring timely distribution of funds for shares accepted.

Positive

• PEO's tender offer attracted 9,454,445 shares, demonstrating strong investor interest.
• The offer price of $11.95 represents 95% of the company’s NAV, indicating a favorable acquisition value.

Negative

• The tender offer was oversubscribed, which may lead to pro rata reductions in share purchases for investors.

BALTIMORE, Sept. 8, 2020 /PRNewswire/ -- Adams Natural Resources Fund, Inc. (NYSE: PEO) ("PEO") today announced the preliminary results of its offer to purchase up to 5,955,676 of its common shares at $11.95, 95% of the $12.58 net asset value per share ("NAV") at the close of regular trading on the New York Stock Exchange on September 4, 2020, the expiration date.

Based on the preliminary count by American Stock Transfer & Trust Co., LLC ("AST"), the depositary for the tender offer, a total of 9,454,445 common shares of PEO were validly tendered and not withdrawn.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 AST, PEO expects to accept for payment all 5,955,676 common shares subject to the tender offer. 

The preliminary information contained in this press release is subject to confirmation by AST and is based on the assumption that all shares tendered through notice of guaranteed delivery will be delivered.  The final proration factor will be announced following the expiration of the guaranteed delivery period and completion by AST 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.

AST Fund Solutions, LLC is the information agent for the Offer.  Shareholders with questions may call AST Fund Solutions, LLC at (800) 549-6746.

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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 80 years across many market cycles. The Funds are committed to paying an annual distribution rate of 6% or more, providing reliable income to long-term investors. Shares can be purchased through our transfer agent or through a broker. For more information about Adams Funds, please visit: adamsfunds.com.

Contact:
Lyn Walther │ Director of Shareholder Communications │800.638.2479 │investorrelations@adamsfunds.com  

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SOURCE Adams Funds

FAQ

What are the preliminary results of Adams Natural Resources Fund's tender offer?

Adams Natural Resources Fund announced that 9,454,445 shares were tendered for its offer to buy back 5,955,676 shares at $11.95.

What is the NAV of Adams Natural Resources Fund as of September 4, 2020?

The net asset value (NAV) of Adams Natural Resources Fund was reported at $12.58 on September 4, 2020.

How will the oversubscription of shares affect the tender offer?

Due to the oversubscription, PEO will purchase shares on a pro rata basis, which may reduce the number of shares some investors receive.

When will payment be made for shares accepted in the tender offer?

Payment for shares accepted will occur promptly after the completion of the confirmation process by American Stock Transfer & Trust Co.