Aberdeen Intermediate Income Fund Plans 1-for-6 Reverse Split
Aberdeen's MIN fund board approved a reverse stock split consolidating every six common shares into one, the company announced.
The Board of Trustees of Aberdeen Intermediate Income Fund, traded on the New York Stock Exchange under the ticker MIN, has approved a 1-for-6 reverse stock split of the fund's issued and outstanding common shares, the Philadelphia-based fund announced Thursday.
Under the terms of the transaction, shareholders will receive one new common share for every six shares currently held. Reverse stock splits reduce the total number of shares in circulation while proportionally increasing the per-share price, leaving the overall market capitalization of the fund unchanged at the moment of execution.
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Reverse splits are a tool commonly used by closed-end funds and other investment vehicles to bring per-share prices to levels considered more attractive to institutional investors or to satisfy exchange listing requirements. Aberdeen has not publicly detailed the specific rationale driving the MIN consolidation beyond the board's formal approval.
Aberdeen Intermediate Income Fund is a closed-end fund focused on intermediate-term fixed-income securities, and the split will affect all holders of record of issued and outstanding common shares at the applicable record date. Shareholders with fractional share positions resulting from the consolidation typically receive a cash equivalent payment in lieu of fractional shares, though specific mechanics were not elaborated upon in the announcement.
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