Savoy Equities raising $40m

By GEOFF SENESCALL

Savoy Equities' new technology subsidiary is in the process of raising $40 million through a private placement to Asian institutions to help to finance its expansion.

This week the company at the centre of the cancelled Britomart project in Auckland launched eSavoy, which is involved in wireless and mobile technologies.

eSavoy is today set to announce details on one of its core investments, E-Zebra - a mobile internet services company with links to Ericsson and Vodafone.

Its other investments are in the wireless technology company IPfinity (formerly Safetynet) and the Shanghai-based software development company JetTronic.

Savoy Equities hopes to have its capital raising completed by the end of the year at which time it intends to separate the group's property interests from its technology operation.

The funds will be used to roll out eSavoy's products and services into its target market, Asia.

The move into technology comes as Savoy Equities posted a loss of $1.76 million on revenue of $10.35 million for the six months to June.

The loss related to Savoy's property business. It included the costs associated with its Britomart litigation and costs associated with its Hyatt residential development in Auckland.

However, Savoy Equities chief executive Kerry Haycock expected the company to post a profit by the year end.

Since the half-year balance date, Savoy had realised investments made in the technology sector, which put earnings back into positive territory.

Savoy was now forecasting for the year to December a net profit of $5 million on revenue of $32 million.

The company was also planning a 10 for one share consolidation which would reduce the number of shares on issue to 56 million.