COLUMBIA, Maryland, June 29, 2026 /PRNewswire/ -- The Mexico Fund, Inc. (NYSE: MXF) (the "Fund") today announced an enhancement to its discount control mechanism, reinforcing the Board of Directors' (the "Board") commitment to narrowing the discount between the Fund's share price and its net asset value ("NAV") and further aligning shareholders' returns with the Fund's long-term investment performance.
As part of this ongoing commitment, the Board has approved a conditional tender offer under which the Fund will conduct a tender for 20 percent of the Fund's then-issued and outstanding shares at a price equal to 98% of the Fund's NAV (minus the costs and expenses related to the tender offer). The conditional tender offer will be triggered if either of the following conditions is met at the end of the three-year period commencing July 1, 2026 and ending on June 30, 2029 (the "Measurement Period"):
- The Fund's total return investment performance measured on a NAV basis is less than the total return investment performance of the Fund's benchmark index, the Morgan Stanley Capital International ("MSCI") Mexico Index; or
- The Fund's shares trade at an average price of 90% or lower below NAV over the last twelve months of the Measurement Period.
If the Fund's performance described above equals or exceeds the MSCI Mexico Index for the Measurement Period and if the Fund's shares trade at an average price of higher than 90% of NAV over the last twelve months of the Measurement Period, no conditional tender offer will be conducted for the period.
The conditional tender offer will complement the Fund's Managed Distribution Plan ("MDP"), another component of the Fund's discount control mechanism that is currently in place. The Board significantly strengthened the MDP in December 2025, increasing the quarterly distribution by 40.0%, from $0.25 to $0.35 per share. Since the MDP's inception in September 2008, the Fund has distributed $28.68 per share in cumulative cash distributions to stockholders as of June 29, 2026.
If a conditional tender offer is triggered, the Fund will issue a press release announcing the conditional tender offer. Additional terms and conditions of a conditional tender offer would also be set forth in the relevant offering materials, which would be distributed to the Fund's stockholders. Final terms of such tender offer, if any, will be determined by the Board in its discretion, consistent with the terms disclosed above.
In the event that a conditional tender offer is triggered and more than 20 percent of the Fund's then-issued and outstanding shares are tendered, the Fund will purchase its shares from tendering stockholders on a pro rata basis (odd-lot tenders for stockholders who own fewer than 100 shares are still subject to pro ration), based on the number of tendered shares, at a price equal to 98% of the Fund's NAV (minus the costs and expenses related to the conditional tender offer), as described above.
CONTACT:
Tofi Dayan
The Mexico Fund, Inc.
+5255-9138-3350
Email: [email protected]
Patricia Baronowski
Pristine Advisers, LLC
+1-631-756-2486
Email: [email protected]
About The Mexico Fund, Inc.
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 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.
SOURCE The Mexico Fund, Inc.
