Blue Chip plans share sale

Listed residential property specialist Blue Chip NZ plans to raise about $7 million from the issue of new shares and is moving into financial services.

Chairman Jock Irvine said the offer was pitched at small shareholders, particularly those who had owned shares in defunct IT company Newcall Group. Last June, the then-listed shell Newcall took over the unlisted Blue Chip.


More could be expected from the new firm soon, he said, possibly including the appointment of a new director and the sale of shares.

Former National MP Wyatt Creech joined Blue Chip's board in December, Irvine joined in October and a third independent director is expected in the new few weeks.

Irvine, former chairman of Newmarket Property Trust and a former director of Pacific Retail Group, said he expected that brokers would soon take a closer look at the company.

Blue Chip would issue its first annual report today, which would throw more light on its activities. Founder, managing director and majority owner Mark Bryers would sell down his stake to get under 75 per cent by the end of June, as required by the market.

This month, Blue Chip said it would launch three subsidiaries: Blue Chip Financial Solutions Australia, which would target Australian property investors; Blue Chip Finance, which would raise money by issuing secured debenture stock; and KFM Financial Services, a fund manager putting money into a diversified portfolio.