Templeton Dragon Fund Inc. Announces an Equity Buyback
November 07, 2012
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The Board of Directors of Templeton Dragon Fund Inc. authorized a share repurchase program on November 7, 2012. Under the program, the company will repurchase up to 10% of its outstanding own shares. The open-market share repurchase programs are intended to benefit shareholders by enabling a Fund to acquire its own shares at a discount to net asset value, thereby increasing the proportionate interest of remaining shareholders. No specific amount of the funds' outstanding shares was authorized for repurchase. Subject to the 10% limitation, the timing and amount of repurchases would continue to be in the discretion of the investment manager. Any repurchases would be made on a national securities exchange at the prevailing market price, subject to exchange requirements, Federal securities laws and rules that restrict repurchases, and the terms of any outstanding leverage or borrowing of the Fund.
As on April 22, 2015, the company announced Any repurchases would be made on a national securities exchange at the prevailing market price, subject to exchange requirements, Federal securities laws and rules that restrict repurchases, and the terms of any outstanding leverage or borrowing of the Fund. If and when a Fund's new 10% threshold is reached, no further repurchases could be completed until authorized by the Board. Until the 10% threshold is reached, Fund management will have the flexibility to commence share repurchases if and when it is determined to be appropriate in light of prevailing circumstances. The share repurchase programs are intended to benefit shareholders by enabling a Fund to repurchase shares at a discount to net asset value, thereby increasing the proportionate interest of each remaining shareholder in the Fund.
Templeton Dragon Fund, Inc. is a closed-end management investment company. The Fund seeks long-term capital appreciation by investing at least 45% of its total assets in equity securities of China companies. The Fund may invest in companies listed on exchanges in mainland China, Hong Kong, Taiwan, or elsewhere. It invests in various sectors, including air freight and logistics; automobiles; banks; beverages; biotechnology; capital markets; chemicals; construction materials; containers and packaging; electrical equipment; instruments and components; entertainment; food and staples retailing; food products; health care equipment and supplies; health care providers and services; hotels, restaurants and leisure; insurance; interactive media and services; Internet and direct marketing retail; information technology (IT) services; life science tools and services; machinery; media; metals and mining; pharmaceuticals, and others. The Fund's investment manager is Templeton Asset Management Ltd.