SUPPLEMENT TO
PROXY STATEMENT
THE FIRST AUSTRALIA FUND, INC.
Gateway Center 3
100 Mulberry Street
Newark, New Jersey 07102
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Special Meeting of Shareholders
November 30, 2000
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The following information supplements information contained in the proxy
statement ("Proxy Statement") for The First Australia Fund, Inc. ("Fund") that
was mailed to you on or about October 31, 2000.
On November 10, 2000, EquitiLink Holdings Limited ("EL") entered into a Stock
Purchase Agreement ("Agreement") with Mira, L.P. ("Mira"), pursuant to which EL
agreed to sell, or to cause one of its affiliates to sell, to Mira, and Mira
agreed to buy from EL or such affiliate, 2,742,461 shares of common stock of the
Fund, adjusted to reflect any stock dividends, splits, combinations or other
corporate actions. The sale is to be concluded subsequent to the satisfaction of
certain conditions including: the expiration or termination of the waiting
period under the Hart-Scott-Rodino Antitrust Improvements Act; the absence of
any court order prohibiting or restraining the sale; the receipt of all
necessary regulatory approvals; and the closing of the sale of the EquitiLink
Group, including the Fund's manager, EquitiLink International Management
Limited, and investment adviser, EquitiLink Australia Limited, to Aberdeen Asset
Management PLC. Assuming Mira continues to hold the Fund shares it presently
owns, following the share sale Mira will own 31.8% of the Funds outstanding
shares. As part of the agreement, Mira has agreed to vote all the Fund shares it
currently owns in favor of the proposal ("Proposal") of the Fund's Board of
Directors, described in the Proxy Statement, for the approval of a new
management agreement and new investment advisory agreement for the Fund. Mira
has also agreed not to solicit proxies in opposition to the Proposal or, prior
to the stock sale, to attempt to influence Fund management or policies or to
take or support any action opposing the Proposal. Finally, Mira has acknowledged
that the Fund shares it is to acquire under the Agreement will be subject to
certain legal restrictions regarding their further sale.
Because the Agreement withdraws the threat of an opposition proxy statement, the
estimated costs of solicitation of proxies for the Special Meeting are reduced
from the $250,000 indicated in the Proxy Statement to $90,000.
Date: November 16, 2000
