Peregrine Securities (UK), the British broking arm of Peregrine Investments, yesterday dismissed moves by the board of Malaysia Equity Fund (MEF) to consider a plan to open-end the fund.
The decision by MEF to announce the review of its options comes in the wake of a Peregrine proposal to open-end and conduct a share repurchase.
Yesterday Nick Paris, director of corporate finance at Peregrine, said he had 50.2 per cent of irrevocable undertakings from shareholders to vote for his proposals.
Peregrine has requisitioned an extraordinary general meeting to vote on its proposals which would require at least a 50 per cent vote for the initial repurchase and changing the MEF board, but also would need a 75 per cent vote for open-ending.
Nicholas Gold, of Barings, who has been appointed to advise MEF, said even if Peregrine was able to pass its plans to repurchase and change the MEF board, Peregrine would not achieve its aim of narrowing the fund's 11 per cent discount to net asset value.
He rejected comments made by Mr Paris that the company was wasting shareholders money, and the Peregrine's stated fee of one per cent of net assets could be substantially supplemented by the flexible professional fees.