Blue Chip buy-up goes unchallenged

Mark Bryers

Shareholders in Blue Chip Financial Solutions raised hardly any questions when they approved a series of related party transactions between the listed residential property specialist and its majority owner, Mark Bryers.

The meeting in Auckland yesterday approved 10 deals to buy various businesses closely related to Blue Chip, Bryers and his associates, and to issue A$30 million ($43 million) of new shares in Australia and list on the ASX.

Bryers owns 61 per cent of the company, which is trading at 88c.

Shareholders did not question why businesses so crucial to Blue Chip were not in its float last year, how the deals would affect the company's poor share price or how much Bryers would be paid.

The only questions raised were whether the company would remain listed here and where its general meetings would be held, how much its dividend would be and if it would arrive before Christmas.

Bryers and chairman Jock Irvine told shareholders their dividend would be announced soon, the company would remain on NZX and hold its meetings here.

Blue Chip can now buy Auckland retail property developer Ingot Holdings and the Tasman Group, paying up to $6.6 million for the Tasman companies, including a deposit of $1.34 million. The final price will depend on the companies' net profit over three years.

Blue Chip will pay a deposit of $100,000 for Ingot and will use a net profit formula to calculate the final purchase price, up to $20 million.

Blue Chip can buy web technology business Enform Corp for $2.6 million and issue 1.7 million shares to apartment owner Empress Leisure.

The deal for Macquarie Bank and CVC Private Equity to buy into Blue Chip was also approved.