Aberdeen Asia Pacific (FAP) Share Consolidation

[Jon G]

Aberdeen Asia Pacific has announced a Cash Redemption of shares. I only have about a 100 shares so I'm considering doing this. The company will buy the shares at Net Asset Value which should be a bit higher than trading price. 

Here's the relevant text from the press release:
"The redemption date for the Company’s annual voluntary cash redemption will be March 31, 2022. Shareholders are entitled to redeem shares of the Company at a price equal to 100% of the Average Net Asset Value (NAV) of the three trading days preceding the March 31, 2022 redemption date, less direct costs. Direct costs are expected to be less than 1%."

Link to source: https://www.abrdn.com/docs?editionId=1fc13027-180c-47ca-aa6e-43af87fa8ad0

My ACB for my FAP shares is $5.64, so I'd take a loss. My main reason for disposing of the shares is really bookkeeping - every month I add a few dollars of dividends and a fractional share. But we are also heading towards higher interest rates, so this may be the worst time to get rid of these shares. If anyone has any thoughts I'd be happy to hear them. Thanks.

[WILLIAM MARTIN]

I’m considering keeping 1 full share and fractional shares in account in case I want to get back into it

Sent from my iPhone

On Feb 5, 2022, at 9:07 PM, Jon G <jonny.d...@gmail.com> wrote:

Aberdeen Asia Pacific has announced a Cash Redemption of shares. I only have about a 100 shares so I'm considering doing this. The company will buy the shares at Net Asset Value which should be a bit higher than trading price. 

--
You received this message because you are subscribed to the Google Groups "Dividend Investing for Canadian Investors" group.
To unsubscribe from this group and stop receiving emails from it, send an email to dripinvestingorg---can...@googlegroups.com.
To view this discussion on the web visit https://groups.google.com/d/msgid/dripinvestingorg---canadian-drips/9f1e1d21-b1e0-4b38-b89d-f479e0a4a436n%40googlegroups.com.

[Thomas Dearman]

Would it not be the exact same thing to just use the form on the monthy statement to sell shares??

If not can someone explain the difference??

[Jon G]

Hi - My understanding is as follows:

1) using the form on the back sells shares within the DRIP at stock market rates. You can't sell shares in certificate form.

2) the buy back allows you to sell shares in certificate form and in the DRIP. The buy back is also calculated based on the Net Asset Value / share. According to FAP's website, there is an approx. $0.50 CAD premium on the NAV vs the market price. The buy back is not a market transaction so FAP can pay any price they set.

The risks are that, in the 4-6 weeks between electing to use the buyback offer and the transaction taking place, the market price rises higher than the NAV/Share. I don't think this is particularly likely but it could happen. A second risk is if the NAV/share drops precipitously in the same time frame. There would have to be a massive write-down or default of some asset for this to happen. I don't think that's likely.

If this is incorrect, please jump-in!

[Bruce Taylor]

I conveniently "lost" my certificate for 36 shares when registration changed to DRS after the change of domicile.  I. too, stand to take a capital loss but prefer to recapture the funds to redeploy them in a more tax efficient investment.

[Jerry Lee Daniel]

MT103/202 DIRECT WIRE TRANSFER
PAYPAL TRANSFER
CASHAPP TRANSFER
ZELLE TRANSFER
TRANSFER WISE
WESTERN UNION TRANSFER
BITCOIN FLASHING
BANK ACCOUNT LOADING/FLASHING
IBAN TO IBAN TRANSFER
MONEYGRAM TRANSFER
IPIP/DTC
SLBC PROVIDER
CREDIT CARD TOP UP
DUMPS/ PINS
SEPA TRANSFER
WIRE TRANSFER
BITCOIN TOP UP
GLOBALPAY INC US
SKRILL USA
UNIONPAY RECEIVER

Thanks.


NOTE; ONLY SERIOUS / RELIABLE RECEIVERS CAN CONTACT.

DM ME ON WHATSAPP
+44 7405 896213