WASHINGTON, Jan. 20 /PRNewswire-FirstCall/ -- The Mexico Fund, Inc. released today the composition of its investment portfolio as of the close of markets on January 20, 2006, the Repurchase Pricing Date described in the Repurchase Offer Notice for the Fund's recent in-kind repurchase offer, which began on December 22, 2005 and expired on January 13, 2006. The terms and conditions of the Repurchase Offer are set forth in the Fund's Repurchase Offer Notice dated December 22, 2005 and the related documents which were mailed to stockholders of record of the Fund as of December 20, 2005.
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 1.25% repurchase price adjustment, for a repurchase price of 98.75% 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 January 20, 2006. The Repurchase Price is $33.30 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 January 27, 2006, the Repurchase Payment Deadline. The preliminary ratio of non-odd lot shares tendered to be accepted for repurchase is approximately 14.69%. 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. Stockholders will also receive a pro-rata portion of the Repurchase Agreements, the value of which will be converted and distributed as 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 net asset value per share in U.S. dollars determined at the close of the regular trading session of the New York Stock Exchange on the Repurchase Pricing Date, reduced by a 1.25% repurchase price adjustment, 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 January 27, 2006. 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 http://www.sec.gov/ and from the Fund at http://www.themexicofund.com/ in the section entitled "Shareholder Information." 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
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 January 20, 2006 (Unaudited)
Percent
Shares of Net
Held Common Stock (97.92%) Series Value Assets
Cement Industry
6,192,152 Cemex, S.A. de C.V. CPO $38,893,206 6.83%
4,902,900 Grupo Cementos de Chihuahua,
S.A de C.V. * 15,397,676 2.70
54,290,882 9.53
Communications
15,281,000 America Movil, S.A. de C.V. A 24,795,014 4.35
33,293,300 America Movil, S.A. de C.V. L 53,451,528 9.38
8,348,100 America Telecom, S.A. de C.V. A1 45,832,799 8.04
8,542,100 Grupo Televisa, S.A. CPO 34,988,483 6.14
10,185,600 Telefonos de Mexico, S.A. de
C.V. A 12,174,874 2.14
171,242,698 30.05
Construction
7,916,933 Empresas ICA, Sociedad
Controladora, S.A. de C.V. * 22,090,683 3.88
Financial Groups
9,730,000 Grupo Financiero Banorte, S.A.
de C.V. O 21,760,502 3.82
8,652,300 Grupo Financiero Inbursa, S.A.
de C.V. O 14,352,156 2.52
36,112,658 6.34
Food and Beverages
901,700 Coca-Cola Femsa, S.A. de C.V. L 2,626,719 0.46
2,442,317 Fomento Economico Mexicano,
S.A. de C.V. UBD 18,366,536 3.22
5,031,100 Gruma, S.A. de C.V. B 18,433,673 3.24
3,159,300 Grupo Bimbo, S.A. de C.V. A 11,725,832 2.06
3,209,500 Grupo Modelo, S.A. de C.V. C 11,453,991 2.01
62,606,751 10.99
Holding Companies
1,946,100 Alfa, S.A. de C.V. A 11,308,634 1.99
7,066,000 Grupo Carso, S.A. de C.V. A1 18,156,227 3.19
2,646,600 Grupo Imsa, S.A. de C.V. UBC 8,334,380 1.46
3,200,000 Grupo Industrial Camesa, S.A de
C.V. * 4,111,232 0.72
41,910,473 7.36
Housing
2,028,400 Consorcio ARA, S.A. de C.V. * 9,126,816 1.60
10,265,700 Corporacion Geo, S.A. de C.V. B 33,920,050 5.95
5,195,982 Sare Holding, S.A. de C.V. B 6,230,550 1.10
3,984,300 Urbi Desarrollos Urbanos, S.A
de C.V. * 27,676,018 4.86
76,953,434 13.51
Mining Industry
6,712,353 Grupo Mexico, S.A. de C.V. B 15,663,307 2.75
Pulp and Paper
3,292,880 Kimberly-Clark de Mexico, S.A.
de C.V. A 12,378,306 2.17
Retail Stores
2,662,113 Alsea, S.A. de C.V. * 7,098,765 1.24
7,026,915 Wal-Mart de Mexico, S.A. de
C.V. V 39,475,322 6.93
46,574,087 8.17
Service
2,755,200 Grupo Aeroportuario del Sureste,
S.A. de C.V. B 8,553,134 1.50
1,791,430 Promotora Ambiental, S.A. de
C.V. B 2,915,306 0.51
11,468,440 2.01
Steel
1,221,000 Industrias CH, S.A. de C.V. B 2,730,686 0.48
260,000 Tenaris, S.A. * 3,884,733 0.68
6,615,419 1.16
Total Common Stock $557,907,138 97.92%
Percent
of Net
Securities Short-Term Securities (2.17%) Value Assets
Repurchase BBVA Bancomer, S.A., 8.20%, dated
Agreements 01/20/06, due 01/23/06 repurchase
price $12,360,991, collateralized
by Bonos del Gobierno Federal.
Value of collateral $12,352,550 $12,352,550 2.17
Total Short-Term Securities 12,352,550 2.17
Total Investments 570,259,688 100.09
Liabilities in Excess of Other
Assets (508,506) (0.09)
Net Assets Equivalent to $33.72 per
share $569,751,182 100.00%
First Call Analyst:
FCMN Contact: chayden@gscorp.com
