SOURCE: The Mexico Fund

October 16, 2008 19:55 ET

Mexico Fund Publishes Repurchase Price and List of Portfolio Securities in Connection With In-Kind Repurchase Offer

WASHINGTON, DC--(Marketwire - October 16, 2008) - The Mexico Fund, Inc. (NYSE: MXF) released today the composition of its investment portfolio as of the close of markets on October 16, 2008, the Repurchase Pricing Date described in the Repurchase Offer Notice for the Fund's recent in-kind repurchase offer, which began on September 18, 2008 and expired on October 9, 2008. The terms and conditions of the Repurchase Offer are set forth in the Fund's Repurchase Offer Notice dated September 18, 2008 and the related documents which were mailed to stockholders of record of the Fund as of September 17, 2008.

Under the repurchase offer, the Fund offered to repurchase up to 5% of its outstanding shares of common stock at net asset value, reduced by a 1.00% repurchase price adjustment, for a Repurchase Price of 99.00% of the Fund's per share net asset value in U.S. dollars as of the close of regular trading on the New York Stock Exchange on October 16, 2008. The Repurchase Price is $18.75 per share. Since more than 5% of Fund shares were tendered, Fund shares will be accepted on a pro-rata basis. The pro-rata portion of the Fund's portfolio securities will be transferred to participating stockholders' Mexican accounts on or before October 23, 2008, the Repurchase Payment Deadline. The preliminary ratio of non-odd lot shares tendered to be accepted for repurchase is approximately 16.20%. The Repurchase Offer will generally be a taxable transaction for participating stockholders.

Stockholders who chose to participate in the Fund's in-kind repurchase offer will receive as proceeds a pro-rata portion of each of the securities provided in the table below and cash. The proceeds shall be equal in value on the Repurchase Pricing Date to the number of shares repurchased by the Fund, multiplied by the Repurchase Price, and adjusted to avoid distribution of fractional shares and/or odd lots, which will be rounded up or down.

The value and the percentage of the Fund's net assets represented by each of the portfolio securities distributed as proceeds may decrease or increase between the Repurchase Pricing Date and the actual receipt of the portfolio securities distributed as proceeds, scheduled to occur on or before October 23, 2008. Participating stockholders are reminded that certain Mexican securities brokers or custodians may choose not to accept repurchase offer proceeds on the Repurchase Payment Deadline on behalf of participating stockholder clients or may delay acceptance of proceeds until certain additional instructions and confirmations required by such Mexican securities brokers or custodians are received. Accordingly, participating stockholders are advised to consult with their Mexican securities broker or custodian and submit any additional instructions or confirmations before the Repurchase Payment Deadline or as quickly as possible thereafter to avoid any delay in payment.

The repurchase offer was not part of a plan to liquidate the Fund. Stockholder participation was not mandatory. Stockholders can continue to purchase and sell Fund shares in cash transactions on the New York Stock Exchange.

This announcement is not an offer to purchase or a solicitation of an offer to sell shares of the Fund. The Repurchase Offer was made only by the Repurchase Offer Notice and the related documents. Holders of Fund shares are urged to read these documents carefully because they contain important information. These and other filed documents are available to investors free of charge both at www.sec.gov and from the Fund at www.themexicofund.com in the section entitled "Corporate Actions." The Repurchase Offer was not extended to (nor were repurchase requests accepted from or on behalf of) holders of Fund shares in any jurisdiction in which the offering of the Repurchase Offer or the acceptance of shares for repurchase would not be in compliance with the laws of such jurisdiction. Changes may be made in the manner of paying proceeds to the extent necessary to accommodate restrictions in certain jurisdictions. To the extent that the securities laws of any jurisdiction required the repurchase offer to be made by a licensed broker or dealer, the repurchase offer shall be deemed to have been made on the Fund's behalf by one or more registered brokers or dealers licensed under the laws of such jurisdiction.

For further information, contact Eduardo Solano, the Fund's Investor Relations Vice President, 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.

The Mexico Fund, Inc.
Schedule of Investments as of October 16, 2008 (Unaudited)



                                                                    Percent
  Shares                                                            of Net
   Held       Common Stock (84.15%)   Series        Value           Assets
            Building Materials
 2,078,600  Grupo Lamosa, S.A.B.
            de C.V.                      *      $   3,094,836         0.86%

            Cement Industry
 4,193,200  Grupo Cementos de
            Chihuahua, S.A.B. de C.V.    *         11,876,662         3.29

            Chemical and Petrochemicals
12,599,772  Mexichem, S.A.B. de C.V.     *         12,837,718         3.56

            Communications
11,888,800  América Móvil, S.A.B.
            de C.V.                      A         21,023,117         5.83
37,419,966  América Móvil,
            S.A.B. de C.V.               L         61,243,244        16.98
   450,900  Axtel, S.A.B. de C.V.       CPO           277,858         0.08
 4,299,800  Grupo Televisa, S.A.B.      CPO        14,219,329         3.94
 5,988,100  Megacable Holdings
            S.A.B. de C.V.              CPO         7,664,299         2.12
 7,921,800  Telmex Internacional,
            S.A.B. de C.V.               A          4,244,915         1.18
 7,921,800  Teléfonos de
            México, S.A.B. de C.V.       A          8,489,830         2.35
                                                  -----------      -------
                                                  117,162,592        32.48
            Construction
 8,200,233  Empresas ICA, S.A.B.
            de C.V.                      *         11,763,671         3.26

            Consumer Products
 3,218,580  Kimberly-Clark de México,
            S.A.B. de C.V.               A          9,199,955         2.55

            Financial Groups
 7,997,833  Bolsa Mexicana de
            Valores, S.A.B. de C.V.      A          4,224,434         1.17
 6,212,200  Grupo Financiero
            Banorte, S.A.B. de C.V.      O          9,710,649         2.69
                                                  -----------      -------
                                                   13,935,083         3.86
            Food and Beverages
 5,217,400  Fomento Económico
            Mexicano, S.A.B. de C.V.    UBD        14,066,647         3.90
 3,000,000  Grupo Modelo,
            S.A.B. de C.V.               C          9,036,767         2.50
                                                  -----------      -------
                                                   23,103,414         6.40
            Holding Companies
 1,989,800  Alfa, S.A.B. de C.V.         A          5,606,894         1.55
 7,551,100  Carso Infraestructura y
            Construcción, S.A.B. de C.V. B-1        3,815,059         1.06
                                                  -----------      -------
                                                    9,421,953         2.61
            Housing
 3,758,700  Corporación Geo, S.A.B.
            de C.V.                      B          4,042,603         1.12
10,128,000  Urbi Desarrollos
            Urbanos, S.A.B. de C.V.      *         10,900,743         3.02
                                                  -----------      -------
                                                   14,943,346         4.14
            Mining Industry
22,938,368  Grupo México, S.A.B.
            de C.V.                      B         13,520,736         3.75

            Retail Firms
   243,500  Grupo Famsa, S.A.B.
            de C.V.                      A            165,710         0.04
11,282,000  Grupo Pochteca, S.A.B.
            de C.V.                      B          1,442,280         0.40
 6,184,200  Organización Soriana,
            S.A.B. de C.V.               B         12,725,062         3.53
 9,739,593  Wal-Mart de México,
            S.A.B. de C.V.               V         23,567,440         6.53
                                                   37,900,492        10.50

                                                                    Percent
  Shares                                                            of Net
   Held       Common Stock (84.15%)   Series        Value           Assets
            Service
 4,298,348  Grupo Aeroportuario
            del Centro Norte, S.A.B.
            de C.V.                      B          4,609,850         1.28%
 3,791,000  Grupo Aeroportuario del
            Pacífico, S.A.B. de C.V.     B          7,136,075         1.98
 3,198,500  Promotora Ambiental,
            S.A.B. de C.V.               B          3,476,817         0.96
                                                  -----------      -------
                                                   15,222,742         4.22
            Steel
 4,718,100  Industrias CH, S.A.B.
            de C.V.                      B          9,625,238         2.67

            Total Common Stock                  $ 303,608,438        84.15




                                                                    Percent
              Principal        Short-Term                           of Net
Securities     Amount      Securities (17.00%)         Value        Assets


Repurchase    $39,318,109  BBVA Bancomer, S.A.,
Agreements                 7.20%, dated 10/16/08,
                           due 10/17/08 repurchase
                           price $39,325,973
                           collateralized by Bonos
                           del Gobierno Federal.    $ 39,318,109     10.90%

               22,011,357  Comerica Bank., 0.27%,
                           dated 10/16/08, due
                           10/17/08 repurchase
                           price $22,011,522
                           collateralized by U.S.
                           Government Agency
                           Securities.                22,011,357      6.10
                                                    ------------   -------
                           Total Short-Term
                           Securities               $ 61,329,466     17.00%
                                                    ------------   -------
                           Total Investments         364,937,904    101.15
                           Other Liabilities
                           in Excess of
                           Assets                     (4,166,537)    (1.15)
                                                    ------------   -------
                           Net Assets
                           Equivalent to
                           $18.94 per share
                           on 19,052,935            $360,771,367    100.00%
                                                    ============   =======

Contact Information

  • CONTACT:
    Eduardo Solano
    Investor Relations
    Vice President
    The Mexico Fund, Inc.
    011-52-55-5282-8900

    CONTACT:
    Patricia Baronowski
    The Altman Group
    (212) 400-2604