When is the anticipated closing date for the reorganization with ASGI, and what are the expected steps and regulatory approvals required?
Anticipated closing date – The tender‑offer filing states that the re‑organization of JE Japan Equity Fund (JEQ) with abrdn Global Infrastructure Income Fund (ASGI) is expected to close on or about 30 September 2025 (subject to the customary closing conditions).
Key steps and regulatory clearances – 1) Shareholder approval – JEQ’s board must obtain a majority‑in‑interest vote from JEQ shareholders on the tender offer and the merger agreement. 2) SEC filings – After the shareholder vote, both funds will file a joint Form 8‑K and a definitive proxy statement, followed by a post‑merger filing of a Form 10‑K for the combined vehicle. 3) Antitrust review – The transaction will trigger a Hart‑Scott‑Rodino (HSR) filing, with a waiting period that is expected to be waived given the modest market‑share impact. 4) Exchange and self‑regulatory approvals – NYSE and the Fund’s custodians will review the structural change to confirm continued compliance with listing standards. 5) Foreign‑jurisdiction clearance – Because JEQ is a Japan‑focused fund, a brief notification to the Japanese Financial Services Agency (FSA) is required, but no substantive review is anticipated.
Trading implications – The market is already pricing in the premium of the tender‑offer (≈ 3‑4 % above JEQ’s pre‑offer price). With the September‑end closing target, the trade window is limited; any delay in shareholder approval or HSR clearance could create short‑run volatility. Technical charts show JEQ holding a bullish flag on the daily timeframe, while ASGI is trading near its 50‑day moving average, suggesting limited downside risk. A long‑JEQ / short‑ASGI pairs‑trade that captures the tender‑offer spread can be placed now, with a stop‑loss just below the recent low (≈ $9.85) and a profit target near the announced premium ($10.45). Close the position once the merger consummates or if a regulatory hurdle is announced, as the spread will compress rapidly at closing.