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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. 2)*
THE MEXICO FUND, INC.
-------------------------------------------------------------------------------
(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
-------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
November 8, 2001
-------------------------------------------------------------------------------
(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
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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
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2) Check the Appropriate Box if a Member of a Group (See Instructions) (a) [x]
(b) [ ]
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3) SEC Use Only
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4) Source of Funds (See Instructions)
OO
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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 0
Person ------------------------------------------------------------------------------------------------
with 10) Shared Dispositive Power
1,250,900 SHARES
--------------------------------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
1,250,900 SHARES
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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)
2.8%
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14) Type of Reporting Person (See Instructions)
IV*
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*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 (See Instructions) (a) [X]
(b) [ ]
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3) SEC Use Only
---------------------------------------------------------------------------------------------------------------------
4) Source of Funds (See Instructions)
OO
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5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e)
[ ]
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6) Citizenship or Place of Organization
BRITISH VIRGIN ISLANDS
--------- -----------------------------------------------------------------------------------------------------------
7) Sole Voting Power
Number of 0
Shares ------------------------------------------------------------------------------------------------
Beneficially 8) Shared Voting Power
Owned by 1,191,100 SHARES
Each ------------------------------------------------------------------------------------------------
Reporting 9) Sole Dispositive Power
Person 0
With ------------------------------------------------------------------------------------------------
10) Shared Dispositive Power
1,191,100 SHARES
---------------------------------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
1,191,100 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)
2.6%
---------------------------------------------------------------------------------------------------------------------
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 (See Instructions) (a) [X]
(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)
[ ]
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6) Citizenship or Place of Organization
ISLE OF MAN
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7) Sole Voting Power
Number of 0
Shares ------------------------------------------------------------------------------------------------
Beneficially 8) Shared Voting Power
Owned by 2,543,550 SHARES
Each ------------------------------------------------------------------------------------------------
Reporting 9) Sole Dispositive Power
Person 0
With ------------------------------------------------------------------------------------------------
10) Shared Dispositive Power
2,543,550 SHARES
---------------------------------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
2,543,550 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)
5.6%
---------------------------------------------------------------------------------------------------------------------
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
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2) Check the Appropriate Box if a Member of a Group (See Instructions) (a) [X]
(b) [ ]
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3) SEC Use Only
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4) Source of Funds (See Instructions)
N/A
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5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) [ ]
---------------------------------------------------------------------------------------------------------------------
6) Citizenship or Place of Organization
BRITISH
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7) Sole Voting Power
Number of 0
Shares ------------------------------------------------------------------------------------------------
Beneficially 8) Shared Voting Power
Owned by 2,543,550 SHARES
Each ------------------------------------------------------------------------------------------------
Reporting 9) Sole Dispositive Power
Person 0
With ------------------------------------------------------------------------------------------------
10) Shared Dispositive Power
2,543,550 SHARES
---------------------------------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
2,543,550 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)
5.6%
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14) Type of Reporting Person (See Instructions)
IN
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6
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CUSIP No. 592835102
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1) Name of Reporting Persons
I.R.S. Identification No. of Above Persons (entities only)
ANDREW PEGGE
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2) Check the Appropriate Box if a Member of a Group (See Instructions) (a) [X]
(b) [ ]
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3) SEC Use Only
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4) Source of Funds (See Instructions)
N/A
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5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) [ ]
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6) Citizenship or Place of Organization
BRITISH
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7) Sole Voting Power
Number of 0
Shares ------------------------------------------------------------------------------------------------
Beneficially 8) Shared Voting Power
Owned by 2,543,550 SHARES
Each ------------------------------------------------------------------------------------------------
Reporting 9) Sole Dispositive Power
Person 0
With ------------------------------------------------------------------------------------------------
10) Shared Dispositive Power
2,543,550 SHARES
---------------------------------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
2,543,550 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)
5.6%
---------------------------------------------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions)
IN
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7
This Amendment No. 2 to the Statement on Schedule 13D amends and supplements
Items 3, 4, 5 and 7 of the Statement on Schedule 13D originally filed with the
Securities and Exchange Commission on August 1, 2001 and amended by Amendment
No. 1 on October 25, 2001 (collectively, the "Schedule 13D") by Laxey Partners
Limited ("Laxey"), The Value Catalyst Fund Limited ("Catalyst"), Laxey Investors
Limited ("LIL"), Colin Kingsnorth ("Kingsnorth") and Andrew Pegge ("Pegge",
collectively with Laxey, Catalyst, LIL and Kingsnorth, the "Reporting Persons"),
with respect to the shares of Common Stock, par value $1.00 per share (the
"Common Stock"), of The Mexico Fund, Inc. (the "Fund").
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
-------------------------------------------------
Item 3 is hereby amended and restated in its entirety to read as follows:
The funds used to purchase the shares of Common Stock described in this
statement were acquired through open market purchases and were derived from
Catalyst's, LIL's and Laxey's investment capital and funds provided by a
discretionary account managed for an unaffiliated third party (the "Account").
The aggregate amount of the funds used to purchase all of the shares purchased
by Catalyst, LIL, the Account and Laxey is $21,250,980, $21,348,752, $1,871,107
and $2,507, respectively.
ITEM 4. PURPOSE OF TRANSACTION
----------------------
Item 4 is hereby amended to add the following information:
On October 22, 2001, Laxey sent a letter to the Fund in which Laxey requested
that the Fund include in its proxy statement relating to the 2002 Annual Meeting
of the Stockholders, a proposal to terminate the Investment Advisory and
Management Agreement between the Fund and Impulsora del Fondo Mexico, S.A. de
C.V. within sixty (60) days after the 2002 Annual Meeting of the Stockholders
(the "Notice Letter"). On November 8, 2001, Laxey submitted a second letter to
the Fund withdrawing the Notice Letter and thereby withdrawing its request that
Laxey's proposal be submitted to the Fund's shareholders and included in the
Fund's proxy statement (the "Withdrawal Notice"). Laxey currently intends to
submit a substantially identical proposal for consideration by the Fund's
shareholders at the next annual meeting of shareholders in accordance with
Section 10(a) of the Fund's Bylaws. In addition, Laxey currently intends to
nominate directors for election by the Fund's shareholders at the next annual
meeting of the shareholders in accordance with Section 10(a) of the Fund's
Bylaws.
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
------------------------------------
Items 5(a) and 5(b) below are hereby amended and restated in their entirety and
Item 5(c) is hereby amended to supplement the original Item 5(c) as follows:
(a) As of the date hereof, Catalyst, together with Laxey, Kingsnorth and
Pegge, are the beneficial owners of 1,250,900 shares of Common Stock,
which represent approximately 2.8% of the issued and outstanding Common
Stock of the Fund. As of the date hereof, LIL, together with Laxey,
Kingsnorth and Pegge, are the beneficial owners of 1,191,100 shares of
Common Stock, which represents approximately 2.6% of the issued and
outstanding shares of the Common Stock. As of the date hereof, Laxey,
Kingsnorth and Pegge, are the beneficial owners, through Laxey's
discretionary authority over the Account, of the 101,400 shares of
Common Stock held in the Account, which represents approximately 0.2%
of the issued and outstanding shares of the Common Stock. The Account
is terminable at any time by the third party, for which the account is
held, upon providing written notice to Laxey. In addition, Laxey,
together with Kingsnorth and Pegge, are the beneficial owners of 150
shares of Common Stock. Accordingly, Laxey, Kingsnorth and Pegge are,
as of the date hereof, beneficial owners of an aggregate of 2,543,550
shares of Common Stock, constituting approximately 5.6% of the shares
of Common Stock outstanding. No other person identified in Item 2
beneficially owns any shares of Common Stock.
(b) As of the date hereof, Laxey, Kingsnorth and Pegge share with Catalyst
the power to vote and dispose of 1,250,900 shares of Common Stock. As
of the date hereof, Laxey, Kingsnorth and Pegge share with LIL the
power to vote and dispose of 1,191,100 shares of Common Stock. As of
the date hereof, Laxey, Kingsnorth and Pegge have sole voting and
dispository power with respect to the 101,400 shares of Common Stock
held in the Account. In addition, as of the date hereof, Kingsnorth and
Pegge share with Laxey the power to vote and dispose of 150 shares of
Common Stock. Accordingly, Laxey, Kingsnorth and Pegge, as of the date
hereof, have voting power and dispositive power over an aggregate of
2,543,550 shares of Common Stock, constituting approximately 5.6% of
the shares of Common Stock outstanding. 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 by reference.
(c) Since the last filing on Schedule 13D, Laxey engaged in the following
open market purchases of Common Stock.
---------------------------------------------------------------------------------------------------------------------
DATE OF PURCHASE NUMBER OF SHARES OF COMMON STOCK BOUGHT PRICE PAID/SHARE
---------------------------------------------------------------------------------------------------------------------
11/02/01 100 $16.69
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11/02/01 50 16.75
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No separate transactions were undertaken by Catalyst, LIL, Kingsnorth or Pegge
during the above time period.
9
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Exhibit A. Letter, dated November 8, 2001, from Laxey Partners Limited to The
Mexico Fund, Inc.
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 Amendment No. 2 to Schedule 13D is true, complete and correct.
Dated: November 9, 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
11
EXHIBIT A
LETTER TO THE MEXICO FUND
LAXEY PARTNERS LTD.
Stanley House, 7-9 Market Hill
Douglas, Isle of Man, IM1 2BF
Tel: 01624 690900 Fax: 01624 623819
www.laxeypartners.com
---------------------
November 8, 2001
VIA HAND DELIVERY
-----------------
Mr. Samuel Garcia-Cuellar,
Secretary,
The Mexico Fund, Inc.
1775 Eye Street, N.W.
Washington, D.C. 20006-2401
RE: THE MEXICO FUND, INC.: WITHDRAWAL OF STOCKHOLDER PROPOSAL NOTICE
----------------------------------------------------------------
Dear Mr. Cuellar:
Reference is made to our previous letter dated October 22, 2001 (the "Notice
Letter") addressed to you as the Secretary of The Mexico Fund, Inc. (the "Fund")
in which we requested that a proposal to terminate the Fund's current Investment
Advisory and Management Agreement with Impulsora del Fondo Mexico, S.A. de C.V.
be submitted to the Fund's shareholders at the next annual meeting of
shareholders. In the Notice Letter we further requested that our proposal and
supporting statement be included in the Fund's proxy statement. We hereby
withdraw the Notice Letter and thereby withdraw our request that our proposal
be submitted to the Fund's shareholders and included in the Fund's proxy
statement.
Sincerely,
LAXEY INVESTORS LIMITED
/s/ Andrew Pegge
-----------------------------
Name: Andrew Pegge
Title: Director
12