abrdn Global Income Fund to Merge with abrdn Asia-Pacific Income Fund in Strategic Move

Proposed Merger of abrdn Funds

On September 11, 2025, abrdn Global Income Fund, Inc. (NYSE American: FCO), announced an agreement to merge with abrdn Asia-Pacific Income Fund, Inc. (NYSE American: FAX). This move, referred to as the Reorganization, has been unanimously approved by both funds' Boards of Directors and is set to streamline operations while enhancing shareholder value.

Understanding the Merger

The primary objective of merging FCO into FAX is to consolidate resources while maintaining the investment goals of the funds. Importantly, the merger will not alter the current policies or objectives of the abrdn Asia-Pacific Income Fund. Both boards have voiced their belief that this strategic realignment is beneficial for shareholders of both funds.

Subject to necessary shareholder approvals from the Acquired Fund, the Reorganization will be structured as a tax-free reorganization according to U.S. federal income tax law. This is anticipated to benefit shareholders who will retain their investment in a more enhanced fund post-merger.

Shareholder Engagement

For shareholders of FCO, a critical moment will arrive on December 10, 2025, when they will participate in a special meeting to vote on the proposed Reorganization. Eligible shareholders as of September 11, 2025, will receive a Proxy Statement detailing the merger. Potential shareholders of FAX are not required to vote on the issuance of shares related to this merger, simplifying the process for them.

Regulatory Considerations

Before the merger can proceed, the Proxy Statement must be filed with the U.S. Securities and Exchange Commission (SEC). This document is crucial as it contains comprehensive details regarding the merger, and shareholders are encouraged to review it thoroughly. After submission, the Proxy Statement could experience amendments or withdrawals based on SEC guidelines.

This merger represents a crucial juncture for both funds and their stakeholders. It aims to bolster operational efficiency while creating a larger fund entity capable of providing competitive returns.

Looking Ahead

As closed-end funds, FCO and FAX are traded on the stock exchange and subject to market fluctuations. The merged entity is expected to present a more robust portfolio to investors, providing both stability and growth potential. This move reflects the evolving landscape of investment management and the increasing importance of strategic partnerships.

In summary, the merger between abrdn Global Income Fund and abrdn Asia-Pacific Income Fund is not just a corporate consolidation but a strategic initiative aimed at maximizing shareholder value and fostering sustainable growth in a dynamic market environment.

For more information, stakeholders are encouraged to keep an eye on the updates regarding the Proxy Statement, which will be available for free on the SEC's website once filed.