The Korea Fund, Inc. Announces Changes To Its Discount Management Program; The Program Provides That The Fund May Repurchase Annually Up To 10% Of Its Common Shares Outstanding As Of The Close Of Business On June 30th Of The Prior Year
Portfolio Pulse from Benzinga Newsdesk
The Korea Fund, Inc. (NYSE:KF) has appointed Citigroup Global Markets Inc. as its agent and broker for implementing its Discount Management Program. The program allows the fund to repurchase annually up to 10% of its common shares outstanding as of the close of business on June 30th of the prior year. The repurchases will be made on a national securities exchange at the prevailing market price. The program aims to enhance shareholder value by purchasing Fund shares trading at a discount from their net asset value (NAV) per share.
September 27, 2023 | 8:04 pm
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POSITIVE IMPACT
The Korea Fund's new Discount Management Program, managed by Citigroup Global Markets Inc., could potentially enhance shareholder value by allowing the fund to repurchase its shares at a discount. However, the effectiveness of the program in reducing any discount in the open market price of Fund shares is not guaranteed.
The announcement of a share repurchase program usually has a positive impact on the stock price as it indicates the company's confidence in its own stock. However, the effectiveness of the program in reducing any discount in the open market price of Fund shares is not guaranteed, which could limit the positive impact.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100