By GEOFF SENESCALL
Sir Michael Fay and David Richwhite are dipping their toes back into the Southern Hemisphere market.
The founders of Fay, Richwhite, one of this country's best-known merchant banking firms, are understood to be part of a group of wealthy individuals who plan to invest in Australasian telecommunications and technology companies.
The pair are thought to be the principal investors in the group, which plans to take large stakes, perhaps in the range of tens of millions of dollars, in promising businesses.
Leigh Davis, a close associate of the businessmen during their halcyon days in New Zealand, will manage the initiative on behalf of the investors. Mr Davis, who is based in Auckland, could not be contacted for comment.
The Australasian high-tech venture is the first known investment push in this region made by Sir Michael and Mr Richwhite since they bought one-way tickets to Europe in 1998.
Based in Switzerland, their aim was to expand their investment banking empire in Europe, where they believed many opportunities existed.
When they left New Zealand they reportedly took personal fortunes of at least $250 million each, made largely in New Zealand's deregulation and privatisation scramble in the 1980s.
While their move was said to be for business reasons, the pair were also keen to escape the controversy that dogged them in earlier years.
Fay, Richwhite was involved in Sir Ronald Davison's drawn-out Winebox inquiry. Sir Ronald investigated Winston Peters' allegations concerning Cook Islands tax dealings involving many parties, including Fay, Richwhite and its associates. The inquiry found no evidence of illegal dealings.
Little is known about the European activities of Sir Michael and Mr Richwhite. But their investment bank was part of a consortium that bought three rail freight companies from British Rail for more than $500 million. Their private equity fund is also believed to have made several investments in technology assets.
The pair have kept offices in Auckland and Sydney. But they sold their interest in the landmark Fay, Richwhite building in Queen St to AMP Investments for an estimated $100 million before leaving the country.
They still own a 25 per cent stake in Tranz Rail - one of several state privatisations, including Telecom and the BNZ, in which they were involved.
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