Proposed Combination with abrdn China Investment Company Limited
The Board of Fidelity China Special Situations PLC is pleased to announce that it has agreed heads of terms with the Board of abrdn China Investment Company Limited in respect of a proposed combination of ACIC with the Company. The combination, if approved by the companies' respective shareholders, will be effected by way of a Guernsey scheme of reconstruction and winding up of ACIC and the associated transfer of part of the cash, assets and undertaking of ACIC to the Company in exchange for the issue of new ordinary shares in the Company.
Following implementation of the Proposals, the enlarged FCSS will continue to be managed, in accordance with its existing investment objective and policy, by FIL Investment Management (Hong Kong) Limited with Dale Nicholls continuing as the named portfolio manager.
The Board of the Company believes that, if the Proposals are implemented, FCSS shareholders will benefit from, amongst other things, the economies of scale that are expected to result from the enlarged asset base, including improved market liquidity in FCSS shares (including in relation to its existing share buyback policy) and cost efficiencies.
The Proposals will be subject to approval by the shareholders of both FCSS and ACIC in addition to regulatory and tax approvals.