Often Partisan

BIH Relisting Announcement – Potential Sale or Investment?

Birmingham International Holdings have given details to the stock exchange today of how they are progressing with the relisting of shares in the company.

The announcement confirms that the accounts for the holding company are due to be released this month and that the accounts for the club and the UK holding company are also in the process of being finalised. Under Football League rules, the club accounts have to be submitted by December 1.

It goes on to announce that a fund-raising exercise to address the company’s liquidity problems is in place and is due to be signed off by the middle of this month with a general meeting of shareholders due to be announced in January 2014 to approve all transactions.

This is interesting, because if you look at it from one angle one could almost be convinced that a sale of the club has been agreed – especially as it talks about “debt and equity”. This is further backed by the fact that there is written documentation (which I have personally seen) which states that Carson was looking for BIH to sell one-quarter of its shareholding in the club; ostensibly to refinance and refloat the holding company prior to the whole club being sold. If this was the case then I would personally be intrigued as to who has purchased the stake as I do not believe Gianni Paladini was prepared to offer money for a stake in the club up front without taking the whole business on; whether he has changed  his mind I do not know – but I certainly wouldn’t have taken on those terms myself having seen what was wanted.

The other angle is that it could be a case of someone has put money in as a loan against a stake in the club; which I believe would be worrying as I don’t think the money would be loaned at rates that would be considered favourable based on past evidence and could be merely a case of “kicking the can down the road a little further” and holding off the inevitable.

The announcement finishes by once again confirming that Carson would step down from the role of Chairman on resumption until his case has come to ” a favourable close” or his resignation, whichever came sooner.

As announcements go it’s intriguing and I will be most interested to see what happens come the middle of the month with respect to the money coming into the company. It could be that the club is on its way to being sold – it could be that someone else has loaned them money and we’re on this merry-go-round for a bit longer.

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86 Responses to “BIH Relisting Announcement – Potential Sale or Investment?”

  • Eamon C says:

    Lets just hope it is a sale.

  • ChrisG says:

    Whether it’s investment or the club being sold, I really hope there will be funds available for LC to bring in a few new faces in january. Sounds like good news though Dan, keep up the good work

    • sean bcfc says:

      comment removed – I did contemplate cleaning up the swearwords and some of the defamatory stuff but it would have left it as just my words. Can you try again and be a bit more civil?

  • John says:

    Actually,all it means is,they have put out an ambiguous statement. They appear to find it difficult,to say exactly what their intentions are and quite clearly,find it difficult to tell the truth. I fear there is some way to go,before this unsavoury lot,let go of our club.

  • zxcv says:

    Dan, For what its worth I think a sale has been agreed but is subject to Carson being found not Guilty, if he was to be found Guilty then I think the Sale would be concluded. I also think that this has nothing to do at all with Mr Paladini, Re Mr Pannu`s statement when he referred to Carson already in talks with some Asian group I think it was.

  • StevieW says:

    Dan

    As you are a man well versed in these matters do you have any idea how much would need to be obtained to get them a favourable result from the HKSE to re list.

  • John says:

    Whoever buys the club,the last people we want,is a group from the far east. The judicial system there,is pedantic and in the very least,suspicious,as are,to our knowledge,football club owners.

  • Agent McLeish says:

    It’s the usual vague statement but interesting that PP’s signing them again.

  • COB says:

    Please, Please, Please let there be a buyer for this club. It’s dying on its feet and for a such a superb club as Birmingham City FC is – it is desperate for change and investment!
    Keep Right On!

  • Oldbluenose says:

    Almajir;, Is it your belief that C,Y. intends to ” hang-on ” to us even if it is by proxy, ?.

    Meaning that another possible Chinese source of funding would find preference with him, ?.

  • StaffsBlue says:

    Is it just more false hope? If I had to lean one way or the other…. it would be towards the possibility that they’re just borrowing money to stay afloat until the result of the court case is known. Which possibly means that he thinks he’s getting off and will be able to repay whoever when his assets are unfrozen. I hope I’m wrong, but… Like previous posters have hinted at… who in their right mind would lend Yeung money… unless there was something in it for them?

    I’ll be shocked if there’s a sale in the offing… deliriously happy, but shocked.

  • Alex T says:

    oh god…. it sounds more like ‘Chinese Investment’ to me, meaning we will be run by CY or another Faceless Chinese business man…. either way, I imagine the purse strings will be held by behind the scenes investors and the like…..

    Winning the league cup was literally like Blues fans making a deal with the devil!!

    comment edited for legal reasons

  • TBone says:

    I thought there had to be an official HKSE announcement if any form of offer for the club had been made? Or beneath all the smoke and mirrors is this it?

  • mark says:

    Pp already mentioned carson will be doing it his way, nothing to the contrary has changed my mind………. Gp deal has already gone up in smoke for him…….it will be some else who will have percentage bcfc….. Imo I actually believe carson believes he will be found not guilty…….. carson brotherlaw could involved possibly imo I believe carson has already his plan b..just in case

  • Art Watson says:

    Almajir ,

    If you were a betting man where would you place your money?

    Sale or More Loans?

    • almajir says:

      More loans

      • Art Watson says:

        And me.

      • AF says:

        OP, I don’t think it will be more loans as there is no possible way of securing them against any assets. Ie not a great deal of value in the playing staff and would not be able to sell the ground too easily. The only way the original investors are going to obtain a decent sum back for their shares is via the sale of a Premiership side. Therefore there is only one option, share issue, funding and attempt at promotion next year.

  • TonyE says:

    Please, please, please let it be the sale of the club, but equally important in my eyes is that it is not to another consortium from the far east. Sorry, but once bitten and all that, plus there would always be doubts that CY still had a finger in the pie and I want rid of both him and PP.

  • ...sappy sad says:

    ………..I find it very interesting that the word Asian was used in that remark and not Chinese,….I personally don’t mind who takes over as long as they become a true member of the bluenose family ..and join in the blues pilgrimage ,wether that be via mecca or wherever

  • Blue Nose Gaz says:

    Please no more far east owners, who in their right mind would lend Yeung money.
    I really don’t know if this announcement is good or bad for our club. I will only celebrate when these lot have totally left the club

    • zxcv says:

      Its not a loan, and the announcement if any will be when they next report to relist, mid November. PP did say Carson was doing his own thing but Paladini can`t be ruled out just yet, but my money would be on the people CY was dealing with Last month as the statement say`s that dealings were at the late stages, so for me that would put PP out the race.

  • Sh*t on the villa says:

    comment removed – less of the racism

  • DoctorD says:

    ===Bearing unforeseen circumstances, resumption of trading in the Shares may take place by the end of 2013 or early 2014.====

    Oh yes, there are bound to be LOTS of unforeseen circumstances — this is Blues and everything’s a soap opera.

  • StaffsBlue says:

    If we are sold to another Chinese conundrum.. err.. consortium, I wouldn’t bet against Carson Yeung popping out of the woodwork at some point in the future. I just can’t see him giving up on his dream that easily.

  • The Francis Fake says:

    This is very interesting. The announcement states that

    “a restructuring of the Group’s debts is being considered. Given current negotiations and subject to agreement on the terms and conditions, it is contemplated that signing of the relevant documents will take place by 15 November 2013”

    I think a restructuring of the debt could involve CY converting part of his debt/directors loan which he is owed by the company into shares as a sweetener for a new loan or equity investor.

  • Poppa999 says:

    I’ve asked this question a lot recently and no-one has really satisfied my curiosity. I am asking this from the point of view that I don’t know about holding shares in the company.
    Carson Yeung is not the majority shareholder in BIH, but he has the largest single stake. If someone buys original shares (or new share issue) and their stake is higher, can they put themselves forward to be Chairman of BCFC?
    Put another way, if I acquire more shares in BIH than CY (and I am sure some shareholders would sell at the right price), could I run BCFC?

    • almajir says:

      You’d have to get yourself elected onto the board to start with.

      Think about precedent Poppa. When Carson bought the initial stake in Blues in 2007, he (Grandtop as was) was the largest individual shareholder with 29.9% – yet grandtop had no say whatsoever in the way the club was run.

      • Poppa999 says:

        Is that because no-one at Grandtop was likely to challenge him?

        • almajir says:

          I think you misunderstood what I wrote.

          in 2007, Grandtop bought 29.9% of BCFC, owning more individually than Sullivan, Gold or Gold – yet could not exert any control whatsoever.

  • Blueboy88 says:

    You can not acquire shares atm…Birmingham International Holdings have given details to the stock exchange today of how they are progressing with the relisting of shares in the company.

  • Foreverblue says:

    We are currently in despair with no hope . Just speculation after speculation. I am optimistic and look at other clubs who were in a dire situation similar to Blues but with new owners have risen from the ashes and are now thriving in the premier league. why not us . We deserve it with our fan base and it will happen mark my words. There is someone out there who Blues fans out will take to there hearts.Once again I will look forward to walking up the Coventry Road content in the knowledge that the opposition (hopefully Villa!) will be in for a beating.

  • Blue Sarah says:

    Dan, been thinking about the flag idea. What about a flag in the German colours to link to the scarves that simply says #delaynomore #selltheclub . What do you think?

  • tony says:

    here we go again speculating they are having a laugh at blues fans again

  • Bluedean1875 says:

    Interesting that this comes of the back of St Andrews getting the ACV. Perhaps they realise there isn’t much to financially rape now. No announcement on the HKSE seems to me that they are being backed into a corner. Personally speaking I think it will be someone like the guy that gave them a ‘Wonga’ type loan some time ago. Unfortunately it will be someone buying the shares on the cheap when relisted and revalued. And Carson will still be around like a bad smell

  • Big Bill says:

    Dan
    I am not being funny here, but I do not understand the following sentence in the BIHL announcement today:-

    “On that basis, bearing unforeseen circumstances, resumption of trading in the Shares may take place by the end of 2013 or early 2014”.

    The word “bearing” bothers me, as it seems more logical at this stage to be saying:-

    “On that basis, BARRING unforeseen circumstances, resumption of trading in the Shares may take place by the end of 2013 or early 2014”.

    An online dictionary states that BEARING means:-
    EITHER
    “a person’s way of standing or moving”
    EXAMPLE “a man of precise military bearing”
    OR
    “relation; relevance”
    EXAMPLE “the case has no direct bearing on the issues being considered”
    (YES THAT REALLY WAS THE EXAMPLE GIVEN IN THE ONLINE DICTIONARY!!!)

    whereas, BARRING means:-
    “except for; if not for.”
    EXAMPLE “barring accidents, we should win”
    (YES, AGAIN, THAT REALLY WAS THE EXAMPLE GIVEN IN THE ONLINE DICTIONARY!!!)

    ALSO, “BEARING” is a NOUN (or VERB… see later), whereas “BARRING” is a preposition, the latter surely being more appropriate in the way that the announcement’s sentence is structured.

    What do you think? Have they made perhaps an UNFORTUNATE spelling mistake here?

    We surely don’t want anyone bearing any more “unforeseen circumstances” to stop the sale of the club, do we?
    Note the use of a version of the VERB “To Bear” (as in “Greeks Bearing Gifts”).

    I hope I get some response from this as it has taken quite a bit of research, but well worth it if I have spotted PP has made a Boob!!!

    Put EACH word in the sentance and see the difference that that implies.

    • zxcv says:

      Whats wrong with you, it simply means anything unforeseen happening.

      • Big Bill says:

        Nothing wrong with me, and I KNOW what they were “trying” to say.
        BUT, I am proposing that they made a significant spelling mistake, which COULD change the meaning.
        Anybody else want to consider what I wrote about BEARING BARRING?

        • Big Bill says:

          And a bit more from me.
          The point I am really making is that here we have a TOP executive ,getting paid exceptional money, more than we earn in a lifetime and something like the fourth highest paid football executive attached to a UK club (allegedly), who is AGAIN signing off a baffling, confusing, pull-wool-over-the-eyes statement on the HKSE, designed surely to extract the urine from Bluenoses again, and he CAN’T EVEN GET HIS WORDS RIGHT.
          PATHETIC.
          Wave another wad of notes you pathetic man PP.

  • Chris W says:

    Al, you say that under The Football League rules they have to submit their accounts by December 1st.
    What will the Football league do it the accounts are not submitted and do they have to be the full accounts for the year or 6 months?
    There is a lot of speculation as to what will be happening, my opinion on this is CY has negotiated a loan and it will have to be repaid by whoever buys the club, this is one way CY can retain control and maybe induce some much needed funding to stave off administration, it could be another form of losing some dirty money.
    KRO+DNM

    comment edited

  • chris says:

    Al,
    from what i heard on goalzone with Paladini , the offer of a 25% stake was turned down mainly to the fact that he would have 2 places on the board against yeung’s 3 places so would always be out voted.

  • Always a Blue says:

    Almajir,

    I was informed last week by a lady connected to the club that they will run out of money within six weeks so if this is true a loan or sale is definitely happening sooner rather than later.

  • Bluenosesol says:

    CY wants to sell the club before a ruling on his court case. He wants the sale to take account of the parachute payment. The only person who has held serious talks with Pannu/CY is Paladini. I would bet that the announcement of a sale to Paladini will break very soon and that the method of acquisition will be convoluted to meet CY’s requirements. Keep the Faith, the light is emerging at the end of the tunnel! KRO.

  • Always a Blue says:

    Big man,

    Funny

  • Steve-0 says:

    I imagine its going to be some kind of high interest loan which is designed to make sure our club stays in the Championship. So it’s intended for January. I doubt very much Carson wants to be selling a League One club that he bought for £80m

  • Big Bill says:

    Daniel/almajir/El Mayor
    Why is the HKSE announcement not mentioned on the BCFC Main Website?

    • almajir says:

      Because it’s not about football? None of the others have ever been announced on there, why should this one?

  • Aussiebrum says:

    Because the BCFC website is about football!

  • SW16girl says:

    Doesn’t look at all like a sale to me. More like a charge being given over the shares by way of security for the loan. It also could well be an attempt to move the club/BIHL into a position where it would be a lot more difficult for it to be seized by the Police as proceeds of money laundering.

    As for who would lend money you are starting with the assumption that real money is actually going to be loaned – I wouldn’t if I were you. I would start from the assumption that it is all some kind of paper exercise with possibly some real money involved as well – think Balram Chainrai at Portsmouth – no one was ever able to pin down the claimed large loans he made to the club and which then magically gave him control over the club. The court case has shown that CY has a considerable number of very dodgy friends and business associates – they are not going to give up just like that.

    • almajir says:

      SW16girl – whilst I commend your commenting on a club which is not your own I would hasten to add that I think you’re barking up the wrong tree…

      • SW16girl says:

        what a polite way to telling me to push off – lets see what happens. I appreciate this is your club but there does seem to be a tendency by all parties to actually believe things they are told by their “sources” whoever they are – that is very dangerous when dealing with the type of people you are dealing with. From the outside nothing looks good about any of this and you look to be sliding inexorably towards a Portsmouth situation. Well done on getting the ground designated as an ACV by the way – possibly the first shot in a long battle. And that’s me signing off

        • almajir says:

          I’m not telling you to push off – more that as an outsider I don’t think you quite understand what is going on as well as you could if you were here… and I don’t think we’re anywhere near a Portsmouth situation because the club doesn’t actually owe any money bar to CY and BIHL. The club’s problem isn’t debt – it’s lack of cashflow and investment…

  • an olden says:

    All these comments are just speculation. . In truth the entry of foreign owners might have pleased the supporters of the clubs being provided billions but in my view it has only created sides who have formed a situation whereby these elite teams are providing the bulk of t.v sport . This itself is in the hands of foreign owners The only hope is for something like the German system whereby club are required to have a substantial share of the ownership in the hands of the teams supporters
    It is unlikely that the people like Doug Ellis who created the premiership with an elite organisation
    free from the F.A will agree for reasons that are obvious. I am of the opinion that in the future there will be some sort of system whereby relegation and promotion will cease and sides will be voted off and a team will be selected in place with something like how the decision for where
    the world cup finals will take place. and we know how good is that system The machine rolls on

    • chris says:

      This type of promotion already applies in UK, Speedway, Rugby League and Ice Hockey and in Rugby Union it is only one promotion spot into the top league and all these sports have money issues even with tv money, because they put too much into the players pockets and care very little about the customers wanting competition for places.
      It’s not sport imo when it is a closed shop based on money rather than sporting excellence to get promoted.

    • StaffsBlue says:

      Until they brought in promotion from the Conference, there was a similar system at the bottom of the old 4th Division… where the bottom 2 clubs at the end of the season had to apply for re-election and was voted on by the other 22 chairmen I think. That’s why the likes of Barrow, Southport and Workington stayed in the league so long. I’m sure someone will correct me if I’m wrong.

  • Alex T says:

    Personally, I think SW16Girl speaks A LOT of sense.

    Too many crooks involved here for them to walk away, which is why CY seems to be such a gambler. Any rational person would have sold up months ago and got away with something whilst they could. With the kind of people he has borrowed money off, I would suggest it is all or nothing for him!

    Lest he have a few less fingers to burn after this is all over……

    • StaffsBlue says:

      This is what I’ve thought all along… that he’s desperately holding on to the club because someone wants their money back.

  • DoctorD says:

    Regarding the bearing/barring thing, it’s probably just a typo.

    • Big Bill says:

      Thank you DoctorD.
      That was my very point.
      A “typo” in an extremely important document which sadly is:-

      “a baffling, confusing, pull-wool-over-the-eyes statement on the HKSE, designed surely to extract the urine from Bluenoses again”,
      as I said above.

      So, they have no attention to detail over there in HK, something which now seems obvious with the shambolic way they are running our BCFC.

      The Birmingham Mail seems to have finally woken up to the crisis with its Colin Tattum “Oblivion” Story today.

  • bully-beef-jnr says:

    Dan- do you think there is anything to be made of the fact that this document was signed by PP and not CY ie could be something pp is dealing with not what cy was in previous report’s ??

  • StevieW says:

    Debt and Equity financing are 2 ways of growing business and if used wisely then it can have a good positive effect. However for those who think this is the selling of BCFC I think not and I would imagine that there will be more debt financing than equity financing as the latter normally requires the relinquishing of a level of control which going by CY and PP this would be the last thing they want to do.

    I believe even if money is made available to BIHL it is not a cert that it will be spent on BCFC, I suspect there is another venture they are planning and will use BCFC to get BIHL to a position to launch whatever they are planning. then they will off load BCFC as job done.

  • Gary says:

    Why would anyone be buying the club? If I was buying it Id wait for the Zigic contract to expire in the summer and sitting currently third from bottom there is a good chance that they could save 10+ million if relegated.
    Thre will be no new news

  • utbb says:

    Pauline Wongs new enterprise is key to all of this

  • Chris W says:

    Not really relevant but an interesting read on the “Supporters Direct” Facebook page and an interview with the Borussia Dortmund CEO Hans-Joachim Watzke: re the way he runs the club and the German philosophy.
    I don’t see why it can’t work here and BCFC become the leaders when all the mess has been cleared up from the CY fiasco.
    There is a link but not sure if Al would want to share it on OP
    KRO+DNM


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