Often Partisan

Further Investment Into BIH

Filings to the stock exchange indicate that two further individuals, Liu Yuanjun and Lyu Yobo have bought substantial stakes in Birmingham International Holdings, making them the fourth and fifth largest shareholders in the company.

The filings, which can be viewed online here and here show that both transactions took place on Thursday – the day before relisting – and were off-market. The fact that both transactions were off the exchange and were for a price of HK$0.05 per share indicates that both investors have subscribed to the new share placing of 1.26bn shares that was approved at the EGM. Thus the money paid for these shares – HK$36,442,600 or approx £2.86million – will have gone directly into BIH. Whether any of this makes its way to BCFC remains to be seen.

Mr Liu has taken a stake of 6.35% whilst Mr Lyu has taken 7.81%. This gives them a relative stake of 6.13% and 7.54% in BCFC respectively.

Again, a quick search of google finds nothing conclusive on either person; neither have held an official position within a HK company and neither have been a substantial shareholder before. Both names are from the mainland, and again would point to further investment from the People’s Republic of China. As both surnames are incredibly common in China it would be very difficult to confirm without official details or proper sourcing who these investors are.

The share price closed on Wednesday up HK$0.02 at HK$0.16, a rise of 10.07%.

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39 Responses to “Further Investment Into BIH”

  • DoctorD says:

    Well I suppose this is good news of some sort.

  • Chris W says:

    It would appear that CY and PP were correct and maybe CY really does have BCFC interests at heart, or is he just setting himself up for the long term he might have to spend in prison. Since not a lot can be found we don’t know if these investors are not some way related.
    Any investment has to be good for both BIHL initially and hopefully BCFC>

  • Blue nose Geoff says:

    Does this mean we won’t be sold as a whole any time soon and would indicate CY is not going to sell but get investment through smaller shareholders which will keep him in control ? Which is not good news a all

  • rhees says:

    It is all speculative really, life of a blue nose hopes and concerns never really
    knowing what’s going on

  • Agent McLeish says:

    Can’t see how any share purchase other than possibly a majority buy-out would benefit BCFC. The only beneficial is CY & BIHL who IMO care little for the club despite what the deluded minority seem to believe.

  • RonJ says:

    I am very suspicious of motives of all the Chinese investment. Are these shares being bought for the interests of BCFC?. The Chinese economy is one of the fastest growing in the world so on the surface it might be a good thing but until matters come out of the shadows and the hairdresser and his cronies are removed from the scene I wii be careful not getting carried away with this news, particularly with the performance of PP on the Tom Ross Show.

    • rhees says:

      I don’t care who invests as long as money comes down to the club.
      just don’t see money filtering down

      • erpa says:

        Do you really think with all the new investors buying billions of shares plus the present s/holders that they want to be hovering around the bottom half of the championship and watching the value of the said shares dwindling away, OR do you think as there are so many big/ major s/holders might just want to get to the prem where they have a chance to hit the big time. With there now being another three on board ie bigger consortium then funding getting to that promised land is far more likely and feasible.

        • Royalblue says:

          Good point, all this looks strategic and calculated to me.

          • StaffsBlue says:

            I’ve no doubt that it’s all calculated, as is everything they do. But to what ends is what really matters.. and they sure as hell ain’t gonna tell us!

        • rhees says:

          Is it blues there after or the oil exlaration there interested in.
          might mean they could push sale of club which to my mind i would prefer

        • Burnham-on-sea-Blue says:

          I don’t believe its calculated, a gamble maybe, the championship is an extremely difficult league to get out of as we well know! Even with investment there are no guarentees!

          • jimbo says:

            There’s every chance that the investors aren’t interested in BCFC as an assett at all.

            As Dan has said before, some investors see it as more appealing/easier to conduct a corperate take over of an existing listed HK PLC firm than to set one up in the first place. As such people could be interested in the PLC for that reason, thinking that the future of the only major asset is in relative turmoil.

  • On the Money says:

    Just shows all this talk of the club going into administration is rubbish. The Chinese will get through this who ever is in charge. Look at MG Rover, it’s all done slowly, slowly.

  • tony says:

    why is everything so secretive and pannu stated he wanted to be in touch more with the supporters well pannu whats happening

    • erpa says:

      Tony forget it mate, This lot are NOT football people they are Business men, they don’t tell there mothers what they are doing its there nature, we don’t need them to tell us we need them to show us then I wont give a hoot as long as we get to where they want to be.

  • The Francis Fake says:

    I would think these investors are buying shares for one of 3 reasons.

    1. In order to participate in a future takeover.
    2. Speculatively, in the expectation of someone else attempting a takeover which would force the price of shares up and therefore allow them to take a quick profit.
    3. Alternatively, it may be that investors have reason to believe that BIH is going to be successful in oil and gas exploration and are taking a long term view.

    I cannot believe that these investors are taking a longer term view to benefit from future dividends and dividend growth from the subsiduary BCFC as it is highly unlikely that there is any hope of BCFC generating any profits for a long time to come.

  • Poppa999 says:

    I am curious that the purchase of share was done on the eve of the re-listing. An prudent investor you would buy at the bottom surely.

    • blackandblue says:

      Two of the investors, Liu (6.35%) and Lyu (7.81%), purchased shares on the eve of re-listing as part of the share placement offering, and did buy at the ‘bottom of the market’ paying just HK$0.05 as against a closing HK$0.163 share price today. This gives them a 226% paper profit!

      The third investor Luo (8.51%) paid an average price of HK$0.102, which still gives him a paper profit of nearly 60% in just a few days. So Luo hasn’t exactly bought at the top of the market either.

      The closing share price of HK$0.163 gives BIHL a valuation of £49.4m (note GB Pounds). Whether BIHL/BCFC is currently worth c.£50m is a matter of opinion, but given offers made thus far for BCFC, £50m does seem a tad high in my opinion.

      What might be a possibility is that Luo, Lyu and Liu who, with a combined 22.67% ownership of BIHL, could be part of a group of investors sharing a similar interest. The question then would be; What outcome for BIHL does their similar interest consist?

  • rhees says:

    I cant see these investers throwing away good money
    they must have a plan
    as always we live in hope.

  • Paul Carter - a lover of BCFC he says:

    So 3 guys with no traceable business history invest big money into BIH

    The possibilities are endless

  • dave mann says:

    atleast theres some money comming in but its where its going that worrys me.DNM & KRO.

  • Atahualpa is a BlueNose says:

    It would seem the new chairman of BIHL could already be making a difference in his role. This new investment will probably not make a jot of difference to BCFC as these folk are more than likely looking into the future of what might happen with BIHL. It’s very unlikely that any new investor in HK is looking towards the UK anymore – they’re more concerned with where the future lies with BIHL.

    I would hazard a guess that anyone interested in BCFC, would not invest in BIHL, and would simply buy a stake of the club from them instead of trying to influence that particular company in any way. Perhaps the penny has dropped with PP and CY, in that they can no longer look to make substantial gains through BCFC and moving on into different spheres is the best way. Many mining and exploration companies float onto the markets via penny stocks, and most investors are speculators hoping for a ‘lucky’ break – such as the one CY claims he received with his investments. If they do find oil, they would not actually drill for it themselves, as I do not believe they have the capacity; more like sell-out to a major company for a sizeable profit and a future slice of the revenues. As far as I am aware, in the south-east of Asia, it always bodes well if you have contacts and a network which can help smooth getting permits/permission etc.

    All in all, BIHL are moving on and BCFC is still continuing to just about keep things ticking over.

    • blackandblue says:

      The more shareholders, with high percentage holdings, that there are in BIHL, the higher the possibility that CY et al can be persuaded/outvoted when it comes to the future direction of BIHL; i.e. to jettison BCFC and, like you suggest, invest in other areas for future growth.

      Reading between the lines, one of the most important aspects for the Directors of BIHL has appeared to get its shares re-listed (this was not necessary for it to sell BCFC). Having a listing on the HKSE can be a valuable asset in itself for people who want to raise money to invest in their business. Also of significance, imo, is that BIHL today released a new ‘Memorandum of Association’. This was agreed/passed on 5 February, but only released to the HKSE today. It also contains subtle ‘differences’ from its previous version. This may or may not be part of BIHL re-inventing itself into a different trading type company. One can but hope.

      All the above is tangental conjecture and in my opinion only.

  • DoctorD says:

    The BIHL corporate profile on the Hong Kong Stock Exchange says the following:

    “The principal activity of the Company is investment holding. The principal activities of the subsidiaries are engaged in (i) professional football operation; (ii) entertainment and media services and (iii) investment holding. ”

    What I don’t understand is a) why BIHL uses the BCFC logo if the club is just one if its many activities and b) why the sudden interest in oil and gas, which has nothing to do with i), ii) or iii) above.

  • rhees says:

    It all blows my head i need paraceetamol

  • sappy sad says:

    football is mainly seen as a great advertiseing agent not
    everybody that puts millions into man u likes football .
    brum is worth what people are willing to pay for it for
    us to succeed the team needs to start winning again
    more often …to do that we need to average two goals
    per game . as on average you need three and a half
    shots on target to score one goal we need to average 7
    shots on target per game to average 2 goals per game
    but still retain the same defensive abilities…kro

  • Richard Granfield says:

    Whoever buys shares or buys BCFC will be doing so for business i.e. money making reasons
    Unless a group of supporters buys the club, any individual or consortium will only care primarily to make a profit from the club.
    This is not necessarily a bad thing, as to make money, the club needs to be in the Premier League.
    If any manager deserves to have a sizeable transfer kitty, then Lee Clark does. My earnest hope is that he will be our manager when we reach the PL after all the problems he has faced (without complaint) since appointment.

  • parchy99 says:

    i bought a euromillions ticket last week………

    For a few short moments i was in heaven, giving my speech on Sky Sports, sitting down with the gaffer discussing the merits of Ronald and Messi, Gold plating my seat in the Tilton………..

    Not even a lucky star……………gutted…………

    How much would you love to make the phone call “Mr Pannu, set up the meeting, the clubs coming home”

  • Hong Kong bluenose says:

    I will buy na euromillions ticket tonite , crossed fingers

  • Mark says:

    I hope for the sake of you fans this mess can be sorted out.

    Clearly affecting the progress of your club and its a credit to your players and management that they just get on with it minus the fuss.

  • mel says:

    I have been critical of CC since things went so wrong. Let’s play devils advocate here. What if he really does have the interest of club and he really don’t want sell but get investors for the club. Before he got arrested he did actually put money into the club to buy players until he got arrested then he had no choice. It would be interesting to see if he does get off and keeps the club then starts to put money back into the club how would people react to him then!!!!!!! Don’t get me wrong I’m not sticking up for him just giving a different point of view

  • Bradley says:

    Someone is definitely making some bunce off this rising share price, makes you think huh

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