KEY POINTS:
Listed residential investor Blue Chip is buying three businesses related to its own managing director, founder and majority shareholder Mark Bryers.
Tasman Mortgage Brokers, Tasman Mortgages and Tasman Insurance Brokers are the targets. Bryers already controls 75 per cent of Blue Chip, which listed earlier this year.
Blue Chip has a market capitalisation of $52 million and its shares are trading around $1. It lost managing director Nick Wevers in September after only seven months in the job. He has since steadfastly refused to answer questions about his sudden and unexpected departure.
Shareholder approval and a special meeting are needed to sanction the related party transactions announced this week, so Bryers said a meeting would be held in the first three months of next year.
An independent appraisal on the fairness of the deals would be sent to shareholders before the meeting.
No price was disclosed on the three deals, but Bryers said the three companies were "owned by Blue Chip-related parties".
Bryers described how all three companies were already a part of Blue Chip's business by saying, "They provide services to Blue Chip clients.
"Tasman Insurance Brokers are specialists in providing insurance solutions for life, health and fire and general clients, with a client base in excess of 8000.
"Tasman Mortgage Brokers and Tasman Mortgages are Blue Chip's preferred mortgage brokers for arranging funding on property investments."
The three businesses had entered into binding heads of agreement to work towards the sale, but Bryers said one of the issues to be resolved was the price to be paid for the companies.