One of the shareholders in MWB Group has welcomed a request from other shareholders for the FSA to investigate the events leading up to MWB Group being put into administration this month.
Pyrrho Investments is a Hong Kong-based fund which has a 24.5% interest in MWB Group and a 11.57% interest in MWB Business Exchange (MWB BX), which is a separate company and is not in administration.
Pyrrho said that since July it had been trying to “understand the full nature” of cash flows between MWB Group and MWB BX. It added that it was considering legal action to recover £8m it believed was “at least” what was owed by MWB Group to MWB BX.
Pyrrho said it was also particularly concerned about MWB Group’s sale of Liberty “at a 30% discount to the then share price”, a “costly” debt refinancing last year, and a “failed attempt to privatise Business Exchange”.
It added: “In summary, Pyrrho believes that the appointment of administrators is the culmination of actions taken by the MWB board since MWB’s share placing in January 2010. It therefore welcomes any enquiry into the events surrounding the appointment of administrators.”
MWB Group did not comment.
david.harris@estatesgazette.com
