Press release from Business Wire
Morgan Stanley China A Share Fund, Inc. Announces the Commencement of Its Transferable Rights Offering
Wednesday, August 25, 2010
Morgan Stanley China A Share Fund, Inc. Announces the Commencement of Its Transferable Rights Offering16:15 EDT Wednesday, August 25, 2010 NEW YORK (Business Wire) -- Morgan Stanley China A Share Fund, Inc. (the “Fund”) (NYSE: CAF) announced today that the subscription period for its transferable rights offering to holders of the Fund's common stock (the “Offering”) has commenced. The Fund is issuing to its stockholders of record (“Record Date Stockholders”) as of August 18, 2010 (the “Record Date”), transferable rights (the “Rights”) entitling the holders to subscribe for an aggregate of approximately 5,440,904 shares of the Fund's common stock. The Rights entitle holders to acquire one share for each three Rights held. The Rights are transferable and are admitted for trading on the New York Stock Exchange (“NYSE”) under the ticker symbol “CAF RT.” Morgan Stanley & Co. Incorporated is acting as dealer manager for the Offering. The subscription period commenced today, August 25, 2010, and will expire at 5:00 p.m., New York time, on September 14, 2010, unless extended (the “Expiration Date”). The actual subscription price per share, which will be determined on the Expiration Date, will be based on a formula equal to 90 percent of the average of the last reported sales price per share of the Fund's common stock on the NYSE on the Expiration Date and the four preceding trading days (the “Formula Price”); provided, however, that in no event shall the subscription price be less than 90 percent of the net asset value per share of the Fund's common stock at the close of trading on the NYSE on the Expiration Date. If the Formula Price is less than 90 percent of the net asset value per share of the Fund's common stock at the close of trading on the Expiration Date, the subscription price will be 90 percent of the net asset value per share on that day. Record Date Stockholders who fully exercise all Rights issued to them will be entitled to subscribe for additional shares at the subscription price pursuant to an oversubscription privilege. If sufficient shares are not available to honor all oversubscription requests, the available shares will be allocated pro rata among those Record Date Stockholders who oversubscribe based on the number of rights originally issued to them by the Fund on the Record Date. Morgan Stanley Investment Management Inc. (“MSIM”), the Fund's investment adviser, has obtained a qualified foreign institutional investor (“QFII”) license pursuant to which it is authorized to invest in China A-shares and other permitted China securities listed on the Shanghai and Shenzhen Exchanges on behalf of the Fund up to its specified investment quota (the “A-share Quota”). The ability of the Fund to increase its investment in China A-shares is contingent upon additional A-share Quota, which the Adviser has obtained in the amount of $250,000,000. The Board of Directors of the Fund has determined that it is in the best interests of the Fund and its stockholders to conduct the Offering and increase the assets available for investment. The Adviser believes that recent developments in the Chinese securities markets are promising and that the proceeds of the Offering will allow the Fund to capitalize more effectively on these unsubscribed attractive opportunities. For further information regarding the Fund's rights offering, or to obtain a Prospectus, please contact the Fund's Information Agent: GEORGESON INC. 199 Water Street, 26th Floor New York, NY 10038 Toll free: (866) 628-6023 or For Banks and Brokers: (212) 440-9800 The Fund is a non-diversified closed-end management investment company seeking capital growth through investments primarily in A-shares of Chinese companies listed on the Shanghai and Shenzhen Stock Exchanges. An investment in the Fund is not appropriate for all investors and should not be considered a complete investment program. There can be no assurance that the Fund will meet its investment objective. The Fund's shares of common stock are listed on the NYSE under the symbol “CAF.” MSIM is a wholly-owned subsidiary of Morgan Stanley. MSIM, together with its investment advisory affiliates, has over 750 investment professionals around the world and approximately $251 billion in assets under management or supervision as of June 30, 2010. By leveraging its global ‘community of boutiques' structure and the strength of Morgan Stanley, MSIM strives to provide outstanding long-term investment performance, service and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,200 offices in 42 countries. For further information about Morgan Stanley, please visit www.morganstanley.com. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful under the securities laws of any such state.Please consider the Fund's investment objective, risks and charges and expenses carefully before investing. The prospectus, which contains this and other information about the Fund, can be obtained by calling (800) 231-2608 and should be read carefully before investing.