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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. ______)*
THE MEXICO FUND, INC.
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(Name of Issuer)
Common Stock, $1.00 Par Value
--------------------------------------------------------------------------------
(Title of Class of Securities)
592835102
--------------------------------------------------------------------------------
(CUSIP Number)
Andrew Pegge Jeffry S. Hoffman
Laxey Partners Limited Swidler Berlin Shereff Friedman, LLP
Stanley House The Chrysler Building
7-9 Market Hill 405 Lexington Avenue
Douglas New York, NY 10174
Isle of Man IM1 2BF (212) 891-9260
011 44 1624 629365
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(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
July 31, 2001
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box [ ].
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See ss. 240.13d-7(b) for other
parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 (the "Act") or otherwise subject to the liabilities of that section of the
Act but shall be subject to all other provisions of the Act (however, see the
Notes).
2
SCHEDULE 13D
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CUSIP No. 592835102
---------- ---------------------------------------------------------------------
1) Name of Reporting Persons
I.R.S. Identification No. of Above Persons (entities only)
THE VALUE CATALYST FUND LIMITED
NO I.R.S. IDENTIFICATION NO
---------- ---------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (a) [X]
(See Instructions) (b) [ ]
---------- ---------------------------------------------------------------------
3) SEC Use Only
---------- ---------------------------------------------------------------------
4) Source of Funds (See Instructions)
00
---------- ---------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required [ ]
Pursuant to Items 2(d) or 2(e)
---------- ---------------------------------------------------------------------
6) Citizenship or Place of Organization
CAYMAN ISLANDS
---------- ---------------------------------------------------------------------
7) Sole Voting Power
0
Number of ------- ---------------------------------------------------
Shares 8) Shared Voting Power
Beneficially 1,250,900 SHARES
Owned by ------- ---------------------------------------------------
Each 9) Sole Dispositive Power
Reporting O
Person ------- ---------------------------------------------------
with 10) Shared Dispositive Power
1,250,900 SHARES
---------- ---------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
1,250,900 SHARES
---------- ---------------------------------------------------------------------
12) Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [ ]
---------- ---------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11)
2.7%
---------- ---------------------------------------------------------------------
14) Type of Reporting Person (See Instructions)
IV*
---------- ---------------------------------------------------------------------
*Not registered under the Investment Company Act of 1940.
3
--------------------------------------------------------------------------------
CUSIP No. 592835102
---------- ---------------------------------------------------------------------
1) Name of Reporting Persons
I.R.S. Identification No. of Above Persons (entities only)
LAXEY INVESTORS LIMITED
NO I.R.S. IDENTIFICATION NO
---------- ---------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (a) [X]
(See Instructions) (b) [ ]
---------- ---------------------------------------------------------------------
3) SEC Use Only
---------- ---------------------------------------------------------------------
4) Source of Funds (See Instructions)
00
---------- ---------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required [ ]
Pursuant to Items 2(d) or 2(e)
---------- ---------------------------------------------------------------------
6) Citizenship or Place of Organization
BRITISH VIRGIN ISLANDS
---------- ---------------------------------------------------------------------
7) Sole Voting Power
0
Number of ------- ---------------------------------------------------
Shares 8) Shared Voting Power
Beneficially 1,114,900 SHARES
Owned by ------- ---------------------------------------------------
Each 9) Sole Dispositive Power
Reporting O
Person ------- ---------------------------------------------------
with 10) Shared Dispositive Power
1,114,900 SHARES
---------- ---------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
1,114,900 SHARES
---------- ---------------------------------------------------------------------
12) Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [ ]
---------- ---------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11)
2.4%
---------- ---------------------------------------------------------------------
14) Type of Reporting Person (See Instructions)
IV*
---------- ---------------------------------------------------------------------
*Not registered under the Investment Company Act of 1940.
4
--------------------------------------------------------------------------------
CUSIP No. 592835102
---------- ---------------------------------------------------------------------
1) Name of Reporting Persons
I.R.S. Identification No. of Above Persons (entities only)
LAXEY PARTNERS LIMITED
NO I.R.S. IDENTIFICATION NO
---------- ---------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (a) [X]
(See Instructions) (b) [ ]
---------- ---------------------------------------------------------------------
3) SEC Use Only
---------- ---------------------------------------------------------------------
4) Source of Funds (See Instructions)
N/A
---------- ---------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required [ ]
Pursuant to Items 2(d) or 2(e)
---------- ---------------------------------------------------------------------
6) Citizenship or Place of Organization
ISLE OF MAN
---------- ---------------------------------------------------------------------
7) Sole Voting Power
0
Number of ------- ---------------------------------------------------
Shares 8) Shared Voting Power
Beneficially 2,365,800 SHARES
Owned by ------- ---------------------------------------------------
Each 9) Sole Dispositive Power
Reporting O
Person ------- ---------------------------------------------------
with 10) Shared Dispositive Power
2,365,800 SHARES
---------- ---------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
2,365,800 SHARES
---------- ---------------------------------------------------------------------
12) Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [ ]
---------- ---------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11)
5.1%
---------- ---------------------------------------------------------------------
14) Type of Reporting Person (See Instructions)
IV*
---------- ---------------------------------------------------------------------
*Not registered under the Investment Company Act of 1940.
5
--------------------------------------------------------------------------------
CUSIP No. 592835102
---------- ---------------------------------------------------------------------
1) Name of Reporting Persons
I.R.S. Identification No. of Above Persons (entities only)
COLIN KINGSNORTH
---------- ---------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (a) [X]
(See Instructions) (b) [ ]
---------- ---------------------------------------------------------------------
3) SEC Use Only
---------- ---------------------------------------------------------------------
4) Source of Funds (See Instructions)
N/A
---------- ---------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required [ ]
Pursuant to Items 2(d) or 2(e)
---------- ---------------------------------------------------------------------
6) Citizenship or Place of Organization
BRITISH
---------- ---------------------------------------------------------------------
7) Sole Voting Power
0
Number of ------- ---------------------------------------------------
Shares 8) Shared Voting Power
Beneficially 2,365,800 SHARES
Owned by ------- ---------------------------------------------------
Each 9) Sole Dispositive Power
Reporting O
Person ------- ---------------------------------------------------
with 10) Shared Dispositive Power
2,365,800 SHARES
---------- ---------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
2,365,800 SHARES
---------- ---------------------------------------------------------------------
12) Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [ ]
---------- ---------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11)
5.1%
---------- ---------------------------------------------------------------------
14) Type of Reporting Person (See Instructions)
IN
---------- ---------------------------------------------------------------------
6
--------------------------------------------------------------------------------
CUSIP No. 592835102
---------- ---------------------------------------------------------------------
1) Name of Reporting Persons
I.R.S. Identification No. of Above Persons (entities only)
ANDREW PEGGE
---------- ---------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (a) [X]
(See Instructions) (b) [ ]
---------- ---------------------------------------------------------------------
3) SEC Use Only
---------- ---------------------------------------------------------------------
4) Source of Funds (See Instructions)
N/A
---------- ---------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required [ ]
Pursuant to Items 2(d) or 2(e)
---------- ---------------------------------------------------------------------
6) Citizenship or Place of Organization
BRITISH
---------- ---------------------------------------------------------------------
7) Sole Voting Power
0
Number of ------- ---------------------------------------------------
Shares 8) Shared Voting Power
Beneficially 2,365,800 SHARES
Owned by ------- ---------------------------------------------------
Each 9) Sole Dispositive Power
Reporting O
Person ------- ---------------------------------------------------
with 10) Shared Dispositive Power
2,365,800 SHARES
---------- ---------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
2,365,800 SHARES
---------- ---------------------------------------------------------------------
12) Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [ ]
---------- ---------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11)
5.1%
---------- ---------------------------------------------------------------------
14) Type of Reporting Person (See Instructions)
IN
---------- ---------------------------------------------------------------------
7
ITEM 1. SECURITY AND ISSUER
This statement relates to the shares of common stock, $1.00 par value, ("Common
Stock") of THE MEXICO FUND, INC., a Maryland corporation ("Fund" or "Issuer").
The address of the principal executive office of the Fund is 1775 Eye Street,
N.W., Washington, D.C., 20006-2401.
ITEM 2. IDENTITY AND BACKGROUND
This statement is being filed jointly by (i) The Value Catalyst Fund Limited, a
Cayman Islands company ("Catalyst"); (ii) Laxey Investors Limited, a British
Virgin Islands company ("LIL"); (iii) Laxey Partners Limited, an Isle of Man
company ("Laxey"); (iv) Colin Kingsnorth, a British citizen ("Kingsnorth"); and
(v) Andrew Pegge, a British citizen ("Pegge" and, collectively with Catalyst,
LIL, Laxey, and Kingsnorth, the "Reporting Persons").
Catalyst is a private investment company formed in May 2000 and created to allow
investors to take advantage of investment opportunities in closed-end funds and
similar investment entities. The address of Catalyst's principal business and
principal office is P.O. Box 309, Ugland House, South Church Street, George
Town, Grand Cayman, Cayman Islands, British West Indies.
LIL is a private investment company formed in March 1999 and created to allow
investors to take advantage of investment opportunities in closed-end funds and
similar investment entities. The address of LIL's principal business and
principal office is Akara Building, 24 De Castro Street, Wickams Cay I, Road
Town, Tortola, British Virgin Islands.
Laxey is the investment manager for each of Catalyst and LIL, subject to the
overall control of the directors of each of these entities. Formed in November
1998, Laxey is a global active value fund manager specializing in arbitrage-led
investment. The address of Laxey's principal business and principal office is
Stanley House, 7-9 Market Hill, Douglas, Isle of Man 1M1 2BF.
Each of Messrs. Kingsnorth and Pegge own one half of the outstanding equity of
Laxey. Kingsnorth's principal occupation is that of portfolio manager and
director of Laxey. His business address is 28 Chelsea Wharf, Lots Road, London,
SW10 0QJ, United Kingdom. Pegge's principal occupation is also that of portfolio
manager and director of Laxey and his business address is Stanley House, 7-9
Market Hill, Douglas, Isle of Man, IM1 2BF, United Kingdom.
Pursuant to General Instruction C and the instructions to Item 2 of this
statement, set forth below are the respective names, business addresses,
principal present occupations and citizenships of the executive officers and
directors or each of Catalyst, LIL and Laxey. The name, business address,
present principal occupation and citizenship of each of the executive officers
and directors of Catalyst are:
8
1. NAME: James McCarthy
BUSINESS ADDRESS: 1000 Skokie Boulevard
Suite 325
Wilmette, Illinois 60091
PRINCIPAL OCCUPATION: Director of Business Development, E*Hedge
Holdings, LLC (a company specializing in the area of alternative
investments)
CITIZENSHIP: British
2. NAME: Jonathan D. Pollock
BUSINESS ADDRESS: 19 Berkeley Street
7th Floor
London W1X 5AE
PRINCIPAL OCCUPATION: Portfolio Manager, Stonington Management
Corporation (the management company for Elliot Associates, L.P. and
Westgate International, L.P.)
CITIZENSHIP: United States
3. NAME: Elizabeth Tansell
BUSINESS ADDRESS: Samuel Harris House
St. George's Street
Douglas
Isle of Man IM99 1EZ
PRINCIPAL OCCUPATION: Managing Director of BoE International Services
Limited (a fund administration company)
CITIZENSHIP: British
The name, business address, present principal occupation and citizenship of each
of the executive officers and directors of LIL are as follows:
1. NAME: Colin Kingsnorth (See above for all other information)
2. NAME: Andrew Pegge (See above for all other information)
3. NAME: Elizabeth Tansell (See above for all other information)
The name, business address, present principal occupation and citizenship of each
of the executive officers and directors of Laxey are as follows:
1. NAME: Colin Kingsnorth (See above for all other information)
2. NAME: Andrew Pegge (See above for all other information)
9
3. NAME: Andrew Leasor
BUSINESS ADDRESS: 28 Chelsea Wharf
Lots Road
London
SW 10 0QJ
United Kingdom
PRINCIPAL OCCUPATION: Marketing Director and Director, Laxey
CITIZENSHIP: British
4. NAME: Andrew Baker (Director of Laxey)
BUSINESS ADDRESS: 15-19 Athol Street
Douglas
Isle of Man
IM1 1LB
PRINCIPAL OCCUPATION: Solicitor
CITIZENSHIP: British
5. NAME: Eddie Gilmore (Director of Laxey)
BUSINESS ADDRESS: 21 Cronk Drean
Douglas
Isle of Man
IM2 6AX
PRINCIPAL OCCUPATION: Retired
CITIZENSHIP: British
During the past five years, neither Catalyst, LIL, Laxey nor any of their
respective executive officers and directors, including Kingsnorth and Pegge, has
been convicted in a criminal proceeding (excluding traffic violations and
similar misdemeanors) or been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and, as a result of such
proceeding, was or is subject to a judgement, decree or final order enjoining
future violations of, or prohibiting or mandating activities subject to, Federal
or state securities laws or finding any violation with respect to such laws.
10
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
The funds used to purchase the shares of Common Stock described in this
statement were acquired through open market purchases and were derived from
Catalysts's and LIL's investment capital. The aggregate amount of the funds used
to purchase all of the shares owned by Catalyst and LIL is $21,250,980.16 and
$19,902,029.40, respectively.
ITEM 4. PURPOSE OF TRANSACTION
The shares of Common Stock owned by each of the Reporting Persons were purchased
for investment. The Reporting Persons may acquire additional securities or
dispose of the securities of the Fund from time to time.
One or more of the Reporting Persons may submit a stockholder proposal for
consideration by the Fund's stockholders at the 2002 annual meeting of
stockholders and for inclusion in the Fund's proxy statement relating thereto.
Alternatively, one or more of the Reporting Persons may seek to have a special
meeting of the stockholders called at which they will submit a stockholder
proposal for consideration by the Fund's stockholders and for inclusion in the
Fund's proxy statement relating thereto. In either case, the proposals will be
to terminate the Investment Advisory and Management Agreement between the Fund
and Impulsora del Fondo Mexico, S.A. de C.V. and/or to convert the Fund to open
end status.
This filing, in lieu of filing on Schedule 13G, is occasioned solely by the
Reporting Person's intended submission of a stockholder proposal. The securities
of the Fund acquired and held by the Reporting Persons were acquired in the
ordinary course of business and, except as described herein, were not acquired
for the purpose of or with the effect of changing or influencing the control of
the Fund and were not acquired in connection with or as a participant in any
transaction having such purpose or effect.
Other than as set forth above, none of the Reporting Persons or, in the case of
non-individual Reporting Persons, any of their directors or executive officers
identified in Item 2, have any present plans or proposals which relate to or
could result in, any of the matters referred to in paragraphs (a) through (j),
inclusive, of Item 4 of Schedule 13D (although they reserve the right to develop
any such plans or proposals).
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a) As of the date hereof, Catalyst, Laxey, Kingsnorth and Pegge are deemed
to be the joint beneficial owners of 1,250,900 shares of Common Stock,
which represents approximately 2.715% of the issued and outstanding
Common Stock of the Fund. In addition, Laxey, Kingsnorth and Pegge are
deemed to be joint beneficial owners with LIL of 1,114,900 shares of
Common Stock, which represents approximately 2.419% of the issued and
outstanding shares of the Common Stock. Accordingly, Laxey, Kingsnorth
and Pegge are, as of the date hereof, deemed beneficial owners of an
aggregate of 2,365,800 shares of Common Stock, constituting
approximately 5.134% of the shares of Common Stock outstanding. No
other person identified in Item 2 beneficially owns any shares of
Common Stock.
11
(b) As of the date hereof, Catalyst, Laxey, Kingsnorth and Pegge have
shared voting power and shared dispositive power with respect to
1,250,900 shares of Common Stock. In addition, Laxey, Kingsnorth and
Pegge share with LIL the power to vote and dispose of 1,114,900 shares
of Common Stock. No other person identified in Item 2 shares the power
to vote or dispose of any shares of Common Stock. The information
contained in Item 2 relating to the persons identified in this Item
5(b) is incorporated herein by reference.
(c) Between June 1, 2001 and August 1, 2001, The Value Catalyst Fund
Limited engaged in the following transactions involving the Common
Stock, all of which were purchases on the New York Stock Exchange:
---------------- -------------------------------- -----------------
DATE OF PURCHASE NUMBER OF SHARES OF COMMON STOCK PRICE PAID/SHARE
BOUGHT
---------------- -------------------------------- -----------------
06/05/01 42,400 $18.93
---------------- -------------------------------- -----------------
06/18/01 50,000 19.25
---------------- -------------------------------- -----------------
06/19/01 100,000 18.91
---------------- -------------------------------- -----------------
Between June 1, 2001 and August 1, 2001, Laxey Investors Limited engaged
in the following transactions involving the Common Stock, all of which
were purchases on the New York Stock Exchange:
---------------- -------------------------------- -----------------
DATE OF PURCHASE NUMBER OF SHARES OF COMMON STOCK PRICE PAID/SHARE
BOUGHT
---------------- -------------------------------- -----------------
06/05/01 42,400 $18.93
---------------- -------------------------------- -----------------
06/06/01 25,400 19.05
---------------- -------------------------------- -----------------
06/13/01 50,500 19.45
---------------- -------------------------------- -----------------
06/14/01 5,000 19.35
---------------- -------------------------------- -----------------
06/20/01 17,000 18.68
---------------- -------------------------------- -----------------
06/28/01 600 19.12
---------------- -------------------------------- -----------------
06/29/01 1,900 19.16
---------------- -------------------------------- -----------------
07/05/01 5,000 19.80
---------------- -------------------------------- -----------------
07/06/01 6,300 19.25
---------------- -------------------------------- -----------------
07/09/01 37,900 19.19
---------------- -------------------------------- -----------------
07/11/01 93,500 18.60
---------------- -------------------------------- -----------------
07/12/01 40,000 18.31
---------------- -------------------------------- -----------------
07/13/01 7,500 18.11
---------------- -------------------------------- -----------------
07/19/01 5,000 18.11
---------------- -------------------------------- -----------------
07/20/01 9,500 18.23
---------------- -------------------------------- -----------------
07/23/01 5,000 18.30
---------------- -------------------------------- -----------------
07/24/01 5,600 18.33
---------------- -------------------------------- -----------------
07/30/01 1,800 18.69
---------------- -------------------------------- -----------------
07/31/01 120,000 18.965
---------------- -------------------------------- -----------------
12
No separate transactions were undertaken by Laxey, Kingsnorth or Pegge
during the above time period.
(d) Not applicable.
(e) Not applicable.
Item 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER
Pursuant to certain agreements dated June 26, 2000 and November 3, 2000,
respectively, Laxey is the exclusive investment manager to Catalyst and LIL.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Exhibit A. Agreement of Joint Filing
13
SIGNATURES
After reasonable inquiry and to the best of the knowledge and belief of
the undersigned, the undersigned hereby certifies that the information set forth
in this Schedule 13D is true, complete and correct.
Dated: August 1, 2001
THE VALUE CATALYST FUND LIMITED
By: /s/ Elizabeth Tansell
----------------------------------
Name: Elizabeth Tansell
Title: Director
LAXEY INVESTORS LIMITED
By: /s/ Andrew Pegge
----------------------------------
Name: Andrew Pegge
Title: Director
LAXEY PARTNERS LIMITED
By: /s/ Andrew Pegge
----------------------------------
Name: Andrew Pegge
Title: Director
/s/ Colin Kingsnorth
-------------------------------------------
Colin Kingsnorth
/s/ Andrew Pegge
-------------------------------------------
Andrew Pegge
14
EXHIBIT A
AGREEMENT OF JOINT FILING
In accordance with Rule 13d-1(k) under the Securities Exchange Act of 1934, as
amended, the undersigned hereby agree to the joint filing with all other persons
signatory below of a statement on Schedule 13D or any amendments thereto, with
respect to the common stock of THE MEXICO FUND, INC., and that this Agreement be
included as an attachment to such filing.
This Agreement may be executed in any number of counterparts each of which shall
be deemed an original and all of which together shall be deemed to constitute
one and the same Agreement.
IN WITNESS WHEREOF, the undersigned hereby execute this Agreement on the 1st day
of August, 2001.
THE VALUE CATALYST FUND LIMITED
By: /s/ Elizabeth Tansell
-------------------------------------------
Name: Elizabeth Tansell
Title: Director
LAXEY INVESTORS LIMITED
By: /s/ Andrew Pegge
-------------------------------------------
Name: Andrew Pegge
Title: Director
LAXEY PARTNERS LIMITED
By: /s/ Andrew Pegge
-------------------------------------------
Name: Andrew Pegge
Title: Director
/s/ Colin Kingsnorth
-------------------------------------------
Colin Kingsnorth
/s/ Andrew Pegge
-------------------------------------------
Andrew Pegge
15