NEW YORK, June 18, 2008 (PRIME NEWSWIRE) -- The Korea Fund, Inc. (NYSE:KF) (the "Fund") announced today that, the settlement date for the delivery of shares in accordance with its 15% in-kind tender offer will be June 23, 2008. The tender offer for up to 4,303,210 shares of its issued and outstanding shares of common stock expired on April 21, 2008 and was oversubscribed. Accordingly, the Fund accepted, after adjusting for fractional shares in accordance with the terms of the offer, 4,303,210 shares in exchange for a pro-rata portion of the Fund's portfolio securities at a price equal to 98% of the net asset value per share determined as of the close of the New York Stock Exchange on April 22, 2008. These shares represented approximately 15% of the Fund's outstanding shares.
Approximately, 8,806,920 shares were properly tendered and not withdrawn by April 21, 2008, the final date for withdrawals. Accordingly, on a pro-rata basis, approximately 48.86% of the shares for each stockholder who properly tendered their shares have been accepted for payment. The tender offer was triggered based on the Fund's shares trading at an average discount of more than 7.5% during the last quarter of 2007.
The Korea Fund, Inc. is a non-diversified, closed-end investment company that seeks long-term capital appreciation through investments in securities, primarily in equity securities, of Korean companies. Its shares are listed on the New York Stock Exchange under the symbol "KF."
RCM Capital Management LLC and RCM Asia Pacific Limited are the Fund's investment manager and sub-adviser, respectively. Investment in closed-end funds involves risks. Additional risks are associated with international investing, such as currency fluctuation, government regulations, economic changes and differences in liquidity, which may increase the volatility of your investment. Foreign security markets generally exhibit greater price volatility and are less liquid than the U.S. market. Additionally, this Fund focuses its investments in certain geographical regions, thereby increasing its vulnerability to developments in that region. All of these factors potentially subject the Fund's shares to greater price volatility. The net asset value of the Fund will fluctuate with the value of the underlying securities. Closed-end funds trade on their market value, not net asset value, and closed-end funds often trade at a discount to their net asset value.
The Fund's daily New York Stock Exchange closing price and net asset value per share, as well as other information, including updated portfolio statistics and performance, are available at www.thekoreafund.com or by calling the Fund's shareholder servicing agent at (800) 331-1710.
Statements made in this release that look forward in time involve risks and uncertainties and are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such risks and uncertainties include, without limitation, the adverse effect from a decline in the securities markets or a decline in the Fund's performance, a general downturn in the economy, competition from other companies, changes in government policy or regulation, inability to attract or retain key employees, inability to implement its operating strategy and/or acquisition strategy, and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations.
This announcement is not an offer to purchase or the solicitation of an offer to sell shares of the Fund or a prospectus, circular or representation intended for use in the purchase or sale of Fund shares.
Fund shares are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any bank. Fund shares involve investment risk, including possible loss of principal.