Peregrine Sewu Securities unhurt by problem in HK
Peregrine Sewu Securities unhurt by problem in HK
JAKARTA (JP): Indonesian securities house PT Peregrine Sewu
Securities will not be directly affected by the financial
difficulties faced by the Peregrine Group of Hong Kong.
Peregrine Sewu Securities president Timothy Gray said
yesterday the difficulties being experienced by the Peregrine
Group in Hong Kong would have no direct impact on PT Peregrine
Sewu Securities in Indonesia.
PT Peregrine Sewu Securities is 85 percent owned by the Hong
Kong-based Peregrine Group and 15 percent by the Indonesian
Gunung Sewu Group of the Ongkosubroto family.
"Peregrine Sewu Securities is a separate legal entity with its
own board of directors consisting of key department heads," he
said.
The securities house is a profitable company with a strong
balance sheet and no outstanding debts, he said.
He said Peregrine Sewu, which had no exposure to any fixed-
income client borrower, would be able to carry on its corporate
financing, equity brokering and fund management activities in
Indonesia.
An industry source told The Jakarta Post recently that
Peregrine Sewu Securities, along with securities houses PT Sasson
Securities Indonesia, PT Panin Securities and PT Credit Lyonnais
Capital Indonesia, had major layoffs in their management due to
financial problems.
Early November last year, Lippo Securities, one of the first
listed securities companies on the Jakarta Stock Exchange, fired
seven top executives as part of its efficiency program to cope
with the monetary crisis.
Peregrine Investments Holdings Ltd, one of Asia's largest
investment banking groups, said yesterday it had failed to reach
an agreement with the Zurich Group of Switzerland on proposed
investment in Peregrine.
The Peregrine Group said it had anticipated that a subsidiary
of the Zurich Group, Zurich Center Investments, would inject
US$200 million in the group in return for convertible preference
shares.
A statement from the Peregrine Group said the First Chicago
banking group was to have injected a further $25 million, but
such investment was contingent upon the completion of the Zurich
transactions.
As a result, the Hong Kong Securities Futures Commission (SFC)
issued restrictions on 10 companies under the Peregrine Group,
banning them from conducting business and disposing of any assets
pending further investigation into the group's financial
situation, the statement said.
Hong Kong's crippled investment bank Peregrine Investments
Holdings gave up its battle for survival yesterday and lodged an
application for liquidation, company officials said.
"An application is under way for liquidation," company
spokesman Tom Grimmer said at Peregrine's city headquarters.
"The board of Peregrine Investments Holdings Ltd regrets to
announce that the company has taken preliminary legal steps in
the preparation of an application for liquidation," a company
statement said.
"A decision will be made on staffing levels by the liquidator
when appointed, probably tomorrow (today)," Grimmer said.