City of London Investment Group PLC and Karpus Management, Inc. Announce Merger

Farmingdale, New York, UNITED STATES

COATESVILLE, Pa. and PITTSFORD, N.Y., June 09, 2020 (GLOBE NEWSWIRE) -- City of London Investment Group PLC (CLIG) and Karpus Management, Inc. announce that they have entered into an Agreement and Plan of Merger whereby the entire issued share capital of Karpus Management, Inc., a US based investment management business, will be purchased, on a debt-free basis, by CLIG for consideration in the form of up to 24,118,400 newly issued ordinary shares in the capital of CLIG, subject to adjustment (which aggregate share amount equates to $99.7 million based on the share price on June 8, 2020).  The purchase will be structured as a merger of a wholly-owned subsidiary of CLIG into Karpus Management, Inc., with the latter becoming a wholly-owned subsidiary of CLIG as a result of the merger.

In recommending the merger, the Directors of CLIG believe that it is highly complementary and represents an opportunity for significant diversification, which is in line with CLIG’s strategic plan. The addition of Karpus Management, Inc. will reinforce CLIG’s presence in the US where it is already established via its investment management subsidiary, City of London Investment Management Company Limited (CLIM). Karpus Management, Inc. invests predominately in closed-end funds (CEFs), which relates to CLIM’s core market, is committed to active management, and has delivered strong investment performance for its clients. The Directors believe that the merger will accelerate the long-term strategy of diversification, thereby further reducing earnings volatility.

As a result of the merger, the founders and management team of Karpus Management, Inc. will become significant stakeholders in the combined business. The investment management teams at CLIM and Karpus Management, Inc. will remain physically, and from a regulatory standpoint, separate and unaltered post-merger.

Many of CLIG’s operational functions are already based in the US and will remain so following completion of the merger. Tom Griffith will remain as Global Chief Executive and will be based in Coatesville, Pennsylvania and report to the CLIG Board of Directors.

About City of London Investment Group PLC (CLIG)

City of London Investment Group PLC is the parent of City of London Investment Management Company Limited, a global fund manager which specializes in closed-end fund investment, and was founded by Barry M. Olliff in 1991, with approximately US$5.0 billion in funds under management as of May 31, 2020. CLIM is authorized and regulated by the Financial Conduct Authority and registered as an Investment Advisor with the Securities and Exchange Commission.

About Karpus Management, Inc.

Karpus Management, Inc. is a US SEC-registered investment management business, with its principal place of business in Pittsford, New York, that uses CEFs amongst other securities to gain exposure for its predominantly high net worth client base. Karpus Management, Inc. was founded by George Karpus in 1986, growing the business to approximately US$3.5 billion in funds under management as of May 31, 2020.

Disclaimer – This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which the offer, solicitation or sale would be unlawful. There will be no public offer of any securities made in connection with the merger transaction described in this press release.

This release is being distributed by Pristine Advisers on behalf of CITY OF LONDON INVESTMENT GROUP PLC and KARPUS MANAGEMENT, INC.

Patricia Baronowski-Schneider
Pristine Advisers

Theresa Barrows
Pristine Advisers