The Mexico Fund Approves Conditional Tender Offer for 20% of Shares at 98% NAV
MXF•The Mexico Fund's Board approved a conditional tender offer for up to 20% of shares at 98% of NAV if the Fund underperforms the MSCI Mexico Index or trades at 90% of NAV during the 3-year measurement period. This complements the Managed Distribution Plan, now paying $0.35 per share quarterly.
1. Conditional Tender Offer Details
The Board approved a conditional tender offer to repurchase up to 20% of the Fund's issued and outstanding shares at a price equal to 98% of NAV, net of related costs. This enhancement aims to narrow the gap between share price and net asset value and align returns with long-term performance.
2. Trigger Conditions
The tender offer will activate if, over the July 1, 2026 to June 30, 2029 measurement period, the Fund’s total return on NAV underperforms the MSCI Mexico Index or if the Fund’s shares trade at an average of 90% of NAV or lower during the final 12 months of that period.
3. Managed Distribution Plan
This conditional offer complements the Fund’s Managed Distribution Plan, which was strengthened in December 2025 with a 40% increase in quarterly payments to $0.35 per share. Since its inception in September 2008, the plan has distributed a cumulative $28.68 per share.
