New Zealand group hikes investments in BWRC to $50 M

The New Zealand-based Savoy Group, which has interests in the controversial BW Resources Corp., is eyeing the Metro Rail Transit III (MRT III) project and other major infrastructure projects in the Philippines.

At the same time, it is increasing its investments in BW Resources Corp. from its current exposure of $10 million to $50 million.

Jihong Lu, Savoy Group chairman and chief executive officer, said that his company has been holding talks in the last six months with the MRT III consortium led by property developer Fil-Estate Corp. headed by Robert John Sobrepeña.

Lu, whose company reportedly has substantial stakes in BW and its sister firm Armstrong Holdings Corp., which is the holding firm of businessman Dante Tan, said his firm is eyeing partners for the latter company, among them Ericcson and Asia Online.

He said the Savoy Group is keen on investing in several major infrastructure projects in the Philippines, especially the MRT III which began partial operations last December.

Lu said infrastructure development is seen by the Savoy Group as one area where there is a potential for long-term revenue growth.

At the same time, he viewed the decline in BW share prices as good a time as any to put money into the company. "We see an opportunity in this crisis and we feel there is no better time to invest in the company than now," Lu said.

The Savoy Group has so far, poured about $10 million in BW and another $10 to $15 million in Armstrong Holdings.

The Savoy Group entered into a strategic alliance with BWRC last year to contribute technology and expertise in gambling and electronic commerce.

The Savoy Group has varied interests in technology, property development and financial services in New Zealand, Australia, Asia and the US.