Bluechip buys broker

Listed property investment and financial services concern Blue Chip Financial Solutions is entering into the mortgage and insurance businesses with its purchase of the Tasman group of companies.

Friday, December 2nd 2005, 7:14AM

The independent directors of Blue Chip have entered into heads of agreement to buy Tasman Mortgage Brokers, Tasman Mortgages and Tasman Insurance Brokers.

Blue Chip chief executive officer Jonathan Woodhams said the company’s goal was to offer a broad suite of financial products to its clients and to maximise returns for its shareholders.

The mortgage broking industry provided opportunities, he said.

“Clearly at the moment the industry is in a consolidation phase, and we’re certainly not ruling out there may be further purchases. Clearly we believe there is further upside potential in that business.”

The independent directors had conducted a purchase review and were satisfied they are in shareholders’ best interests, and PricewaterhouseCoopers was currently preparing an independent report on the purchase for shareholders.

“(But) they represent appropriate business expansions at attractive entry prices, offer considerable synergies and significantly reduce future related party issues,” he said.

Tasman Insurance specialises in providing insurance solutions for life, health and fire and general, with a client base in excess of 8000. Tasman Mortgage Brokers and non-bank mortgage provider Tasman Mortgages are Blue Chip's preferred mortgage brokers for arranging funding on property investments.

The three companies - owned by Blue Chip managing director Mark Bryers, who owns around 66% of Blue Chip – currently provide services to Blue Chip clients.

Each of the Tasman, Ingot and Enform acquisitions is conditional on the approval of the Blue Chip shareholders at a special general meeting expected to be held in mid-December.

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