Aberdeen Frontier Mkts Inv Co Ltd Tender offer update (6449S)

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RNS Number : 6449S

Aberdeen Frontier Mkts Inv Co Ltd

22 December 2016

Aberdeen Frontier Markets Investment Company Limited

Tender offer update

22 December 2016

Further to the publication on 9 December of an announcement confirming termination of the tender offer to purchase up to 100 per cent. of the Ordinary Shares in issue, the Board of Aberdeen Frontier Markets Investment Company Limited (the "Company") have received detailed proposals from Aberdeen Fund Managers Limited regarding the future of the Company.

The Board in consultation with Aberdeen Fund Managers Limited (the "Manager") and Numis Securities, and following discussions with certain shareholders, believe that there remains demand for a listed, Aberdeen-managed, closed end frontier market vehicle, providing exposure to the Frontier Markets of Africa, the Middle East, Eastern Europe, Asia and Latin America. Following these discussions, the Board have also concluded that this would be best accessed on a direct equity basis rather than as a fund of fund proposition.

This new proposition would be run by Aberdeen's Emerging Market equity team, under the leadership of Devan Kaloo and Joanne Irvine.

The Board of the Company expect to publish a circular to shareholders (the "Circular") by the end of January. The Circular will propose an amendment to the investment policy to allow direct equity investment. In addition, the Circular will provide Shareholders with an opportunity to realise their investment in the Company at prevailing NAV less costs should they wish to do so.

As part of the new proposition a revised discount control will be put in place, with annual tender offers subject to discount level. The Board have agreed with the Manager a reduction in the base fee to 1% of net assets, and the removal of the performance fee. In addition, and as a reflection of the Manager's commitment to the Company going forward, when the investment policy is amended, Aberdeen commit to invest GBP10m into the Company either through acquiring shares in the market or the acquisition of New Ordinary Shares issued at NAV.

This Announcement contains Inside Information as defined under the Market Abuse Regulation (EU) No. 596/2014.

Enquiries:

Aberdeen Fund Managers Limited

(Manager to Aberdeen Frontier Markets Investment Company Limited)

William Hemmings / Gary Jones

Tel: [phone]

Grant Thornton UK LLP

(Nominated Adviser)

Philip Secrett

Tel: [phone]

Numis Securities Limited

(Nominated Broker)

David Benda/Hugh Jonathan

Tel: [phone]/1263

This information is provided by RNS

The company news service from the London Stock Exchange

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December 22, 2016 09:42 ET (14:42 GMT)