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THE MEXICO FUND, INC.
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(Name of Registrant as Specified In Its Charter)
THE MEXICO FUND, INC.
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FOR: The Mexico Fund, Inc.
CONTACT: Eduardo Solano
The Mexico Fund, Inc.
011-52-55-5282-8900
INVESTOR RELATIONS: Gordon McCoun
Media: Brian Maddox
Morgen-Walke Associates
212-850-5600
FOR IMMEDIATE RELEASE
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MEXICO FUND ANNOUNCES GREATER LIQUIDITY IN RESPONSE TO SHAREHOLDERS
-- Approves Quarterly In-kind Repurchase Offers for
100% of Outstanding Shares --
Washington, D.C., March 6, 2002 -- The Mexico Fund, Inc.
(NYSE: MXF) Board of Directors, after extensive contact with shareholders, met
yesterday and approved a policy to conduct quarterly in-kind repurchase offers
at 98% of net asset value ("NAV") for 100% of the Fund's outstanding shares in
response to the desire of shareholders for greater liquidity and a permanent
narrowing of the discount at which Fund shares have historically traded.
Your Board is confident that this quarterly in-kind repurchase offer program
could be launched promptly if the Fund's current investment adviser is retained.
However, the Board is concerned that if the Laxey proposal to terminate the
investment management agreement is approved, the quarterly in-kind repurchase
offer program could be delayed indefinitely. Termination of the investment
management agreement will disrupt the Board's plans to implement the quarterly
in-kind repurchase offer program. The Fund will have to engage a new investment
adviser that the Board is satisfied has the ability to manage your Fund's
portfolio and the quarterly in-kind repurchase offer program. As required by the
Investment Company Act, the Board will then have to call a special shareholders
meeting to obtain approval of a new investment management agreement with the new
investment adviser.
The Fund will contact the Securities and Exchange Commission ("SEC") today to
determine whether it is possible to amend its exemptive application to permit
the Fund to conduct the 100% quarterly in-kind repurchase offers as part of its
share repurchase policy currently under consideration by the SEC. However, the
Fund is committed to this initiative and should the SEC not approve the Fund's
exemptive application or proposed amendment, the Fund will conduct the quarterly
in-kind 100% repurchase offers under other existing SEC regulations. The Board
believes that the 100% quarterly in-kind repurchase offers will provide
shareholders with greater liquidity in their investment and aid in narrowing the
discount to NAV at which Fund shares trade.
- more -
For further information, contact the Fund's Investor Relations office at
011-52-55-5282-8900, or by email at investor-relations@themexicofund.com.
The Mexico Fund, Inc. is a non-diversified closed-end management investment
company with the investment objective of long-term capital appreciation through
investments in securities, primarily equity, listed on the Mexican Stock
Exchange. The Fund provides a vehicle to investors who wish to invest in Mexican
companies through a managed non-diversified portfolio as part of their overall
investment program.
This press release may contain certain forward-looking statements regarding
future circumstances. These forward-looking statements are based upon the Fund's
current expectations and assumptions and are subject to various risks and
uncertainties that could cause actual results to differ materially from those
contemplated in such forward-looking statements including, in particular, the
risks and uncertainties described in the Fund's filings with the Securities and
Exchange Commission. Actual results, events, and performance may differ. Readers
are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. The Fund undertakes no obligation to
release publicly any revisions to these forward looking statements that may be
made to reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events. The inclusion of any statement in this
release does not constitute an admission by The Mexico Fund or any other person
that the events or circumstances described in such statement are material.
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