PHILADELPHIA, Sept. 1 /PRNewswire-FirstCall/ -- Aberdeen Latin America Equity Fund, Inc. (the "Fund") (NYSE AMEX: LAQ), announced today that the Fund's Board of Directors has declared a capital gain and net investment income distribution in the estimated amount of $9.282 per share. The capital gain portion of the distribution is comprised of long-term capital gains estimated at $8.504 per share and short-term capital gains estimated at $0.671 per share. The net investment income portion of the distribution is estimated at $0.107 per share. The precise amount of the distribution will be determined on the record date of the distribution, at which time the Fund will make a further announcement.
The distribution will be payable on October 29, 2010 to stockholders of record on September 14, 2010 with an ex-dividend date of September 10, 2010. The distribution will be paid in shares of the Fund's common stock. Stockholders may, however, request that their distribution be paid in cash in lieu of common stock. The Fund will limit the aggregate amount of cash to be paid out in the distribution to all stockholders to 10% of the aggregate dollar amount of the total distribution. If cash distribution requests exceed this limit, the Fund will pro-rate the cash distribution among all stockholders who have made such requests, based on the amounts requested. Requesting stockholders who do not receive 100% of their distribution in cash, will receive the balance in shares of common stock of the Fund. Stockholder requests to receive cash in lieu of stock must be received by Computershare Trust Company, N.A., the Fund's transfer agent, not later than 4 p.m. (New York time) on October 20, 2010. All fractional shares will be paid in cash.
The per share value of shares of the Fund's common stock to be issued in the distribution will be determined on October 21, 2010. The per share value will be the average trading price of the Fund's common shares on the New York Stock Exchange as of the close of trading during a three-business day period ending on October 21, 2010.
The distribution consists primarily of long-term capital gains realized in 2009 as result of the Fund's portfolio restructuring following the change of Investment Manager. The Board of Directors considered available options, including an all-cash distribution or a Cash Election Distribution with higher caps or no cap on the cash component, and approved the Capped Cash Election Distribution for the following reasons:
-- The size and non-recurring nature of the gains. -- The adverse long-term impact on the Fund's total expense ratio and investable capital were the distribution paid entirely in cash. -- The potential market impact of selling the Fund's portfolio securities at a time when market conditions are less favorable to shareholders' long-term interests and the transaction costs associated with such disposals. -- The tax implications if further gains were generated as a result of the sale of portfolio securities to raise cash to meet an all-cash or high-cash distribution.
A written notice of the planned distribution will be sent to stockholders. The written notice will include instructions on how stockholders can request to receive cash in lieu of stock.
Stockholders who have questions regarding the distribution may contact The Altman Group at 1-800-821-2803. In addition, the Fund has posted on its website, http://www.aberdeenlaq.com/, information regarding the distribution.
The Fund is a closed-end management investment company seeking long-term capital appreciation primarily through investment in Latin American equity securities.
Aberdeen Latin America Equity Fund, Inc. is listed on the NYSE AMEX under the ticker symbol "LAQ."
Important Information
Aberdeen Asset Management Inc. has prepared this report based on information sources believed to be accurate and reliable. However, the figures are unaudited and neither the Fund, Aberdeen Asset Management Investment Services Limited (the Investment Adviser), nor any other person guarantees their accuracy. Investors should seek their own professional advice and should consider the investment objectives, risks, charges and expenses before acting on this information. Aberdeen is a U.S. registered service mark of Aberdeen Asset Management PLC.
If you wish to receive this information electronically, please contact: InvestorRelations@aberdeen-asset.com
Aberdeen Latin America Equity Fund, Inc.
CONTACT: Aberdeen Asset Management Inc., Investor Relations,
1-866-839-5205, InvestorRelations@aberdeen-asset.com
Web Site: http://www.aberdeenlaq.com/
