Publication of Circular

RNS Number : 3633J

Aberdeen Asian Income Fund Limited

20 August 2021

 

20 A ugust 2021

ABERDEEN ASIAN INCOME FUND LIMITED

Legal Entity Identifier (LEI):  549300U76MLZF5F8MN87

Publication of Circular

Further to the statement released by the Company on 12 August 2021, Aberdeen Asian Income Fund Limited (the "Company") has today published a circular (the "Circular") in relation to the proposals for the Company to become UK tax resident and join the UK's investment trust regime (the "Proposals"). Given the Company's investments are primarily made in the Asia Pacific region, the Board believes that being UK tax resident will enable the Company to benefit from a number of double taxation treaties between the UK and jurisdictions in which the Company invests thereby lowering withholding tax rates applicable to a significant proportion of the dividends received by the Company. This in turn should increase the revenue of the Company available for distribution to Shareholders.

In order to effect the Proposals, the Company will be required to adopt new articles of association (the "New Articles") in order to remove the current restrictions on the Company carrying out its business in the UK. In addition, in order to align the Company's name with the name of the investment manager's business, which has recently changed to abrdn plc, the Board is also proposing to change the Company's name to abrdn Asian Income Fund Limited.

As well as providing further details on the Proposals, the Circular includes notice of an extraordinary general meeting to be held at 9.00 a.m. on Wednesday, 8 September 2021 at 1st Floor, Sir Walter Raleigh House, 48 - 50 Esplanade, St Helier, Jersey JE2 3QB (the "EGM"). The adoption of the New Articles and the change of name requires the approval by Shareholders at the EGM of the Company. If the special resolutions are passed at the EGM, it is expected that the tax residency of the Company will migrate to the UK and the Company's name will change with effect from 1 January 2022, the first day of the Company's new financial year. For the avoidance of doubt, the migration of the Company's tax residency is not conditional on the change of name being approved.

In anticipation of the Proposals being effected, the current Chairman of the Company, Charles Clarke, has confirmed his intention to retire at the end of the current financial year. It is intended that Ian Cadby, a current Director, will assume the role of Chairman from 1 January 2022. The Board intends to appoint a new Jersey resident Director later this year in anticipation of Mr Clarke's retirement.

Given the risks posed by the spread of COVID-19 and in accordance with the provisions of the articles of association of the Company and the Government of Jersey guidance, physical attendance at the EGM is unlikely to be possible. If the law or Government of Jersey guidance so requires at the time of the EGM, the Chairman of the EGM will limit, in his sole discretion, the number of individuals in attendance at the EGM. Should the Government of Jersey measures be relaxed by the time of the EGM, the Company may still impose entry restrictions on certain persons wishing to attend the EGM in order to ensure the safety of those attending the EGM. Given they are unlikely to be able to attend the EGM in person, Shareholders are strongly encouraged to appoint the chairman of the EGM as their proxy to vote on their behalf at the EGM.

A copy of the Circular has been submitted to the Financial Conduct Authority and will be available for inspection at the National Storage Mechanism which is located at  https://data.fca.org.uk/#/nsm/nationalstoragemechanism  and on the Company's website at  www.asian-income.co.uk .

Terms used in this announcement shall have the same meaning as those used in the Circular, unless the context requires otherwise

For further information please contact:

Maria Allen

Aberdeen Standard Fund Managers Limited

020 7463 6000

 

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