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About ASA Limited
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ASA Limited was founded as a South African corporation in 1958 (Its original name was American-South African Investment Company, Limited). The Company was the idea of Charles Engelhard, Chairman of Engelhard Industries Inc., which at the time, maintained extensive business interests in the United States and South Africa.
The Company was organized to provide primarily Americans a medium to invest in the common shares of companies engaged in the business of mining gold in South Africa. At the time, Americans were prohibited from owning gold bullion and South Africa was the producer of 80 percent of the world's gold. Unlike today, it was difficult for the average investor to purchase shares traded in Johannesburg. At that time there were approximately 25 South African gold mining companies.
The Company's initial public offering in the United States was underwritten by Dillon, Read & Co. Inc., which had extensive experience in South African securities. The initial public offering amounted to approximately $28 million and the shares were listed on the New York Stock Exchange using the ticker "ASA". No additional equity has been raised since the Company's initial public offering.
Originally, ASA's investment policies required it to invest only in South African companies. In 1969 shareholders approved a proposal to allow the Company to invest up to 20 percent of its assets outside of South Africa. Later, as it became evident that gold production in South Africa was declining both absolutely and as a percentage of world production the Company reached out to find opportunities in other parts of the world.
In 2004 the Company moved its place of incorporation to Bermuda because of a change in tax law in South Africa that would have adversely affected ASA and its shareholders. Shortly thereafter, in 2005, shareholders approved changes in the Company's investment policies to permit the Company to invest its assets worldwide without geographical restrictions.
In 2008, the Board of Directors initiated a tender offer program. The first of these tender offers in 2008 reduced the number of shares outstanding from 9.6 million to 7.2 million. The second tender offer in 2009 reduced the number of shares outstanding from 7.2 million to 6.48 million. The Board of Directors has further committed to another tender offer of 10% of the Company's capital during 2010 should the discount at which the shares trade be on average in excess of 10% during a 12 week measurement period in that year.
Today, ASA Limited remains close to its roots as a closed-end investment company, registered with the United States Securities and Exchange Commission and its shares are listed on the New York Stock Exchange. The Company is a professionally managed, globally diversified precious minerals portfolio.
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