SOURCE: The Mexico Fund

The Mexico Fund

June 09, 2009 08:00 ET

Mexico Fund Announces Final Results of Special Meeting of Stockholders

WASHINGTON, DC--(Marketwire - June 9, 2009) - The Mexico Fund, Inc. (NYSE: MXF) announced today that at the reconvened special meeting of stockholders held on June 8, 2009 ("Special Meeting"), stockholders voted to eliminate the Fund's in-kind repurchase offer program as a fundamental policy of the Fund (the "Policy").

Final Results of Special Meeting

The presence, in person or by proxy, of stockholders entitled to cast a majority of all votes entitled to be cast at the Special Meeting was necessary to constitute a quorum for the transaction of business. On June 8, 2009, the holders of approximately 52.9% of the Fund's common stock as of the record date were represented in person or by proxy, thus constituting a quorum for the transaction of business at the Special Meeting.

The elimination of the Policy received the required vote of 67% or more of the shares present in person or by proxy at the Special Meeting. Approximately 92.6% of the holders of stock present in person or by proxy voted "FOR" the elimination of the Policy (8,872,898 votes).

Implementation of Actions to Address Stock Price Discount

The Board has authorized the Fund to restore quarterly distributions under its Managed Distribution Plan ("MDP") at an annual rate of 10% of NAV, and intends to maintain distributions at that level. The Board's action will be reflected in the next quarterly distribution under the MDP.

The Board previously announced that if during a 12-week measuring period following the elimination of the Policy, the Fund traded at a volume-weighted average discount to net asset value ("NAV") of greater than 10%, the Board would authorize an in-kind tender offer to acquire 15% of the Fund's outstanding securities at a price of 98% of the Fund's NAV on the pricing date for the tender offer in exchange for a pro-rata "slice" of the Fund's portfolio securities. Since stockholders have now voted to eliminate the Policy, the first 12-week rolling measuring period has commenced, beginning with the week of June 8, 2009.

Since stockholders have now voted to eliminate the Policy, the Board intends, as previously announced, to authorize the Fund's investment adviser to repurchase up to 10% of the Fund's outstanding common stock in open market transactions during any 12-month period if and when Fund shares trade at a price which is at a discount of at least 10% to NAV.

For further information, contact the Fund's Investor Relations office at 011-52-55-5282-8900, or by email at

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.

Contact Information

    Eduardo Solano
    Investor Relations
    Vice President
    The Mexico Fund, Inc.

    Patricia Baronowski
    The Altman Group