NEW YORK, Jan. 8, 2013 /PRNewswire/ -- The Greater China Fund, Inc. (NYSE: GCH) (the "Fund") announced today that Fund stockholders have approved Aberdeen Asset Management Asia Limited ("Aberdeen") as the Fund's new investment manager at the Special Meeting of Stockholders of the Fund (the "Special Meeting") held earlier today.
Additionally, as a result of Aberdeen's approval by stockholders, and pursuant to the Fund's previously announced agreement between the Fund and City of London Investment Management Limited ("CLIM"), the Fund's largest stockholder, the Fund announced that it intends to commence promptly an issuer tender offer to acquire in exchange for cash up to 70% of the Fund's issued and outstanding shares at a price per share equal to 99% of the Fund's net asset value per share as determined by the Fund on the next business day following the expiration date of the tender offer (the "Tender Offer"). CLIM has agreed with the Fund to tender all of the Fund shares it beneficially owns in the Tender Offer and in the event that CLIM is able to tender all of the Fund shares it beneficially owns, CLIM has agreed that it will enter into a "standstill agreement" with the Fund for one year following the completion of the Tender Offer. Under the standstill agreement, CLIM will be permitted to be a passive investor in the Fund and to purchase shares of the Fund for investment purposes only. The Fund has further agreed with CLIM that if 75% or more of the Fund's outstanding shares have been tendered and not withdrawn in the Tender Offer, then the Tender Offer will be cancelled, the Board of Directors will recommend that the Fund be liquidated and the Fund will proceed to solicit proxies from stockholders for the liquidation and dissolution of the Fund immediately thereafter.