Tekla Capital Management LLC Announces Proposed Transaction
June 20 2023 - 5:48PM
Business Wire
Tekla Capital Management LLC (Tekla) announced today that it has
entered into an agreement with abrdn Inc. for a strategic
transaction involving four NYSE-listed healthcare & biotech
thematic closed-end funds (the Funds), totaling $3.1 bn in assets
under management.1
Under the proposed transaction, the Tekla investment team
responsible for the management of the Funds will join abrdn to form
abrdn’s healthcare and life sciences investment team and abrdn will
become the investment adviser to the Funds. Following the proposed
transaction, the Funds will continue to be managed in accordance
with their existing investment objectives and strategies, by the
same team of Boston-based investment professionals pursuing the
same investment philosophy and employing the same investment
process that has served the Funds well through the years. The Funds
and their shareholders will benefit from abrdn’s expertise as a
global investment firm with 2,344 investment professionals and
anticipated expense savings as a result of abrdn’s scale and
resources. abrdn is a leader in closed-end funds, with $29.8
billion in US and UK listed closed-end funds under management.2
The Funds are:
- Tekla Healthcare Investors (HQH)
- Tekla Life Sciences Investors (HQL)
- Tekla Healthcare Opportunities Fund (THQ)
- Tekla World Healthcare Fund (THW)
Each Fund is a non-diversified closed-end management investment
company sponsored and managed by Tekla. Each Fund’s shares are
listed on the New York Stock Exchange.
The proposed transaction is subject to the approval of new
investment management contracts between abrdn and each Fund by the
boards of trustees of each Fund and by the shareholders of each
Fund at a special meeting of shareholders anticipated to be held on
August 14, 2023. A proxy statement containing information about the
meeting and the proposal to approve new investment management
contracts will be mailed to the Funds’ shareholders of record as of
June 16, 2023. Additional information regarding the proposed
transaction and proposed new investment management contracts with
abrdn will be contained in the proxy statement.
The transaction is currently expected to be completed in the
third quarter of 2023, subject to required fund board and
shareholder approvals and the satisfaction of applicable regulatory
requirements and customary closing conditions.
About Tekla
Tekla is an asset manager primarily focused on healthcare
investing. Since its inception, Tekla has maintained a singular
focus on the asset class. Its expertise comes from a diverse team
of individuals, many with advanced degrees in science and business,
investing experience and industry experience that help drive
investment decisions. For more information, please visit
www.teklacap.com.
About abrdn
abrdn is a global investment company that helps clients and
customers plan, save and invest for the future. abrdn’s purpose is
to enable its clients to be better investors. abrdn manages and
administers £500bn of assets for clients (as at 31 December 2022).
abrdn is structured around three businesses – Investments, Adviser
and Personal – focused on their changing needs. The capabilities in
abrdn’s Investments business are built on the strength of its
insight – generated from wide-ranging research, worldwide
investment expertise and local market knowledge. abrdn’s teams
collaborate across regions, asset classes and specialisms,
connecting diverse perspectives and working with clients to
identify investment opportunities that suit their needs. As at 31
December 2022, abrdn’s Investments business manages £376bn on
behalf of clients - including insurance companies, sovereign wealth
funds, independent wealth managers, pension funds, platforms, banks
and family offices. For more information, please visit
www.abrdn.com.
Additional Information about the Funds and
the transaction
This press release is not intended to, and does not, solicit any
proxy from any shareholder of the Funds. The solicitation of
proxies to effect the transaction described herein will only be
made by a definitive proxy statement.
The Funds and their trustees and officers, Tekla and its
officers and employees, and other persons may be deemed to be
participants in the solicitation of proxies with respect to the
approval of new investment management contracts described herein.
Fund shareholders may obtain more detailed information regarding
the direct and indirect interests of a Fund’s trustees and
officers, Tekla and its officers and employees, and other persons
by reading the proxy statement relating to the transaction when it
is filed with the Securities and Exchange Commission. Fund
shareholders should read the proxy statement when it is available
because it contains important information. The proxy statement will
be available for free at the Securities and Exchange Commission’s
website (www.sec.gov).
Statements in this press release that are not historical facts
are forward-looking statements as defined by the United States
securities laws. You should exercise caution in interpreting and
relying on forward-looking statements because they are subject to
uncertainties and other factors that are, in some cases, beyond a
Fund’s control and could cause actual results to differ materially
from those set forth in the forward-looking statements.
________________________ 1 As of June 16, 2023 2 As of 24
January 2023
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