Peregrine Securities (UK), the London broking arm of Peregrine Investments has admitted an unnamed Hong Kong-based affiliate of the company holds a 7.59 per cent stake in the embattled Malaysia Equity Fund (MEF).
Yesterday's revelations of the holding - which was larger than expected - caused alarm at Barings in London, which is currently advising the US$216 million fund on restructuring proposals.
Barings said it would consider reporting Peregrine to regulatory authorities.
Peregrine has been seeking to open-end the fund in a bid to narrow its substantial historic discount-to-net asset value, claiming 50.2 per cent of shareholder support.
However, Peregrine Securities (UK) has always insisted it has no interest in the fund, and only stands to benefit if the proposals go through.
It is asking for 1 per cent of net assets as a fee to implement the restructuring.
