The Taiwan Fund, Inc. Announces Conditional Tender Offer Policy

Rhea-AI Summary

The Board of Directors of the Taiwan Fund, Inc. (NYSE: TWN) has adopted a conditional tender offer policy, replacing its previous Discount Management Program. This policy allows for a tender offer to purchase up to 25% of outstanding shares at 98% of net asset value (NAV) if the Fund's NAV performance surpasses that of the TAIEX Total Return Index over the five years ending December 31, 2025. The Board believes this will enhance liquidity for stockholders, allowing them to sell a larger number of shares at a better price.

Positive

• Adoption of a conditional tender offer policy enhances potential liquidity for stockholders.
• Tender offer allows for the purchase of up to 25% of shares at 98% of NAV, potentially improving shareholder value.

Negative

• None.

BOSTON, Dec. 16, 2020 /PRNewswire/ -- The Board of Directors of the Taiwan Fund, Inc. (NYSE: TWN) (the "Fund") announced today that its Board has adopted a conditional tender offer policy (the "Policy") in lieu of the Fund's Discount Management Program (the "Program").

Under the Policy, the Fund would conduct a tender offer to purchase up to 25% of its outstanding shares at 98% of net asset value ("NAV") if the Fund's NAV performance for the five year period ending December 31, 2025 were exceeded by the performance of the Fund's benchmark (the TAIEX Total Return Index) over that period. 

The Board believes that adopting the Policy in lieu of the Program is in the best interest of stockholders. Stockholders will benefit either from the Fund's over performing the benchmark or from a tender offer that will provide stockholders with a better source of liquidity than the Program – an ability to sell to the Fund a more meaningful number of shares than available under the volume-constrained purchases permitted under the Program and at a significantly better price.

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The Fund is a diversified closed-end investment company, which seeks long term capital appreciation primarily through investments in equity securities listed on the Taiwan Stock Exchange. Shares of the Fund are listed on the New York Stock Exchange under the ticker symbol "TWN."

For additional information on the Fund, including information on the Fund's holdings, visit the Fund's website at www.thetaiwanfund.com or call 1-877-217-9502.

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SOURCE The Taiwan Fund, Inc.

FAQ

What is the new policy announced by Taiwan Fund, Inc. (TWN)?

The Taiwan Fund announced a conditional tender offer policy to purchase up to 25% of its outstanding shares at 98% of net asset value if it outperforms its benchmark by December 31, 2025.

How will the conditional tender offer benefit shareholders of TWN?

Shareholders will have increased liquidity options, allowing them to sell more shares at a better price compared to the previous Discount Management Program.

What benchmark will the Taiwan Fund use to evaluate its performance?

The Fund will compare its performance against the TAIEX Total Return Index over a five-year period ending December 31, 2025.

When was the conditional tender offer policy announced by TWN?

The policy was announced on December 16, 2020.