Blue Chip wants to buy Ingot

Investment company Blue Chip is talking to the owners of Ingot Holdings about buying the business.

Ingot is a residential property developing and trading company and is owned by related parties of the newly listed Blue Chip, including managing director Mark Bryers.

It has a deal with Blue Chip where it supplies residential investment properties.

Other companies related to Bryers, the founder and majority shareholder of Blue Chip, Tasman Mortgage Brokers, Tasman Mortgages and Tasman Insurance Brokers, are also in the process of being bought by Blue Chip.

Because of the relationship with Ingot, Blue Chip has required stock exchange waivers to remove the need for shareholder approval.

Chairman Jock Irvine said the proposed Ingot acquisition would have to be carefully considered, though it had good "commercial logic" and would streamline the company's operations.

Key terms of the deal, including timing and price, have yet to be agreed.

Any agreement would be conditional on the approval of Blue Chip's independent directors and an independent appraisal report would also be required.

If a decision is made to proceed, the deal will be put to shareholders with the plan to buy Bryers' mortgage and insurance companies at the Blue Chip annual meeting on May 31.

In June last year, defunct IT enterprise and then listed shell company Newcall Group took over the unlisted Blue Chip.

Back then it was a real estate entity which promoted investments in housing but with plans to become a full-service finance company.

It is now involved in savings schemes, particularly those aimed at retirement savings.

This month, Blue Chip announced a maiden first-half profit as a listed company of $4.8 million.