(Source: Business Wire)
Morgan Stanley India Investment Fund, Inc. (the "Fund") (NYSE: IIF), a closed-end management investment company, announced the proposed record date for an anticipated rights offering of its shares of common stock (the "Offering"). Subject to the registration statement for the Offering becoming effective under the Securities Act of 1933, as amended, the Fund will issue to stockholders of record as of June 30, 2009 (the "Record Date") one non-transferable right for each whole share of common stock held. Four rights will entitle the holder to purchase one share of common stock at the subscription price.
The Offering will only be made by means of a prospectus to be distributed to Record Date stockholders on or about July 6, 2009. The subscription price has not yet been determined by the Fund. The subscription price, which will be determined on the expiration date of the Offering (the "Expiration Date"), will equal 95percent of the average of the last reported sales price per share of the Fund's common stock on the New York Stock Exchange on the Expiration Date of the Offering and the four preceding trading days, with a requirement that the price be no lower than the net asset value per share of common stock of the Fund at the Expiration Date.
Stockholders who fully exercise all rights issued to them will be entitled to subscribe for additional shares at the subscription price pursuant to an oversubscription privilege. If all available shares are then subscribed for, the Fund may issue additional shares in an amount up to 25percent of the shares available pursuant to the Offering. If all subscription rights are exercised (including the additional 25percent), the Fund will issue approximately 6,142,713shares of its common stock in the Offering.
The subscription rights are exercisable from July 6, 2009 until, up to and including, 5:00p.m. New York City time on July 22, 2009, the Expiration Date, unless extended by the Fund.
"The proceeds of the Rights Offering will allow us to capitalize more effectively on our recent efforts to invest incremental portions of the Fund's assets in attractive opportunities," said Randy Takian, Head of the Morgan Stanley Retail & Intermediary Business at Morgan Stanley Investment Management. "We are pleased to present current investors with this unique opportunity that gives them the right to acquire additional shares of the Fund at a price that may be below market and without incurring direct transaction costs.
