Often Partisan

BIH Confirm Receipt of Offer for up to 24% of BCFC

Birmingham International Holdings have announced to the stock exchange that they have received an “indicative non-binding offer” from an unnamed third party for a stake in Birmingham City.

The announcement confirms that BIH will consider selling no more than a 24% (a quarter of its 96.64% stake) at this time in order to retain the listing status and that a board meeting was called on Friday to discuss the offer. No further details are given as to whether the bid is to be accepted or where the bid has come from.

As news goes it is vague and an anti-climax – but it does confirm the stories that the club would be sold piecemeal to any potential investors. It’s not quite what people were hoping for – I will admit I’m disappointed there is no MOU but I understand that negotiations are ongoing and that the board are aware that they need to move on this. It’s not quite the final chapter, but we’re fast getting to the conclusion of the saga.

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65 Responses to “BIH Confirm Receipt of Offer for up to 24% of BCFC”

  • AdamNGB says:

    Quite disappointed with that. Still, happy an offer is at least on the table (although we knew this)

    • Paul Carter - Voice of Reason says:

      Same Adam. We already knew the business would be sold in tranches so what’s the beef that 25% has been offered? So the share price has gone up? That happens when a company gets a potential investment offer. Too many harbingers of doom wallowing in the misery. We have a bid, we have a buyer what’s not to like? Its almost as if some people enjoy spreading gloom

  • EddieBirmingham says:

    massive anti-climax

  • Fange says:

    tunnel? light? etc etc. :-)

  • Chrisg says:

    True to form, yet more delays

  • SCoy says:

    While it is disappointing not to know more on our potential buyer, it is still a ‘letter of intent’ or non-binding offer, is the term sheet used in a sales process… which establishes a contractual negotiating framework between the ‘potential buyer’ and BIHL as they work towards a purchase and sales agreement, a definitive one! So to me I would say things are moving along nicely, we’ve been patient up to now… Just a little longer.

  • Richard Barron says:

    I hate this ‘cloak and dagger’ stuff. Excuse my scepticism; but do we even know if this bid exists or is real. I remember the last time BIHL announced that the Chinese media company were investing and then it crashed and burned. Considering all the hype; this is no different to what we’ve heard before.

  • Chris W says:

    Vague, I would say almost invisible, they have told us or the HKSE something we didn’t already know.
    Only selling 24% is like like buying one wheel on a car, and with our luck its the one with a puncture. We knew it was going to be in tranches, but surely that doesn’t give the buyers any controlling interest or power.
    If I am correct? Carson Yeung bought 29% from the golds and still wasn’t allowed a voting seat to begin with.

  • edd77 says:

    Did they even need to suspend shares for that announcement?

  • Trev Abdul says:

    Minimum requirement of BIHL met, im happy with that after the silence. Its moving in the right direction. Some blues fans need to lower their expectations, things of this nature take time, if you compare it to selling a house ( a scenerio we can all probably relate to) look how long that can take and that has 100 times less legal protocols etc

  • Gary says:

    Just listening to some bloke on Radio WM it doesn’t sound to optimistic to me I really think they want to keep hold of blues. I think they want someone to buy into blues so they can just put money in to keep them afloat while the Chinese still run things and have the say in what goes on who in their right mind would do that it’s just crazy the only way these people will let go of the club is if they are made to (admin) while these fools are dragging it out blues are being left behind with no money and no players it’s a totally ridiculous situation which is only going to get worse.

    • Luke Bowen says:

      Whilst I naturally try to avoid being over-optimistic, I don’t think your comment makes sense Gary.

      The answer is that nobody would want to buy 24% of the stock if that’s all they were going to end up with. They would only buy the 24% if there was a contractually binding agreement in place for them to acquire at least a controlling stake or, preferably, all of the stock in the long-term.

      This scenario, where a potential buyer initially only acquires 24%, is exactly what Dan has been advising us would happen. It allows the transfer of the business to start, it allows BIH to retain their HKSE listing and, most importantly for us, it allows for investment to be made into the team.

  • Oldbluenose says:

    As I said in O-P’s earlier announcement, We have to remain patient, [ difficult as it may be ], We do know by now the way things are done over there [ H-K, ],
    We May, or may not like the end result [ if there is one ], but until things are made clearer, we are walking in a fog, — So step slowly,!!.

  • Gary says:

    @wilfordwm: No wonder one man who’s acquired clubs for rich buyers before told me he would warn people off #bcfc – not enough clarity + too many cooks. Reading this doesn’t fill you with optimism I think the only people that will buy into blues is more dodgepots what a complete joke they have turned us into.

    • Fortinbras says:

      Too many cooks or too many crooks?
      At the moment, all we know is there has been an offer of a moderate investment – that’s it. No real reason for anything more than a shrug of the shoulders and a “so what?” for now. This general bipolar reaction on here to even this kind of news – moving from elation to depression in 24 hours – is bewildering.

      • Gary says:

        To be fair I think this depression has been going on for the last two years and these owners are having a laugh at our expense. I think we are going to get dodgy owners again that’s why everything is shrouded in secrecy. Like I’ve said before worrying times ahead I think.

  • Bluenosesol says:

    The commercials are moving in the direction that Dan had predicted. The current owners are not likely to drop 4 viable offers and then end up with a bum deal. I believe that this could be the end of our nightmare and the beginning of BCFC 2014! I can understand the mistrust and scepticism but strongly urge people to be patient. We may be on the crest of a golden wave!! KRO!

    • Chris W says:

      I’d rather us be in calm waters while we repair the the damage caused by the turbulent waters we have endured these last two years. I would just be happy with a season of stability and buoyancy.
      As with the last deal that BHIL supposedly signed that sank, you can understand the scepticism.

      • Bluenosesol says:

        Chris, I said I do understand the scepticism and to some extent of course I share it. However this appears to be the first major development to end our nightmare in over two years. I am simply saying that we should afford a couple of days of patience to see where this deal is going and be prepared to dream the possibility that this is the beginning of the end and a fresh start. I have stated where I stand on what I expect from the new owners but I don’t think that at this stage we should be falling over each other to shoot down the initial communications and write it off as yet another confidence trick from those running the club. If this does prove to be a bum deal, then give it them with both barrels, but in the meantime, lets get the deal out into the open and give it a fighting chance.

        • Chris W says:

          Fair point, I suppose with so many delays and smoke and mirrors I find it difficult to believe anything at the moment, let alone get even a tinge of elation.
          If anything is going to happen it has to be before the 30th and as they are 7 hours in front of us we would want some news late Thursday night, if not before.

          • edd77 says:

            Maybe I should knw this but why does it have to be before the 30th

          • Chris W says:

            That is when the interim financial accounts have to be presented to the Football League to show how they are going to finance next season, they then have to mid June early july to finalise them, alternatively they have to announce a takeover or buy out is imminent. The Football League rules are pretty strict on this so penalties could be severe, to the extent of possible expulsion.

          • edd77 says:

            Oh right cheers Chris KRO

    • Cotswold Blue says:

      Hmm… let’s hope it doesn’t end up being a golden shower!!

  • BrianMc7 says:

    Very disappointing news, relative to the expectations I had this morning. Still, we can hope this is stage one of a sale process.

  • Mr Crosby says:

    Too little too late for me to renew.

  • Mineheadblue says:

    I feel a mixture of anger, scepticism and of being very let down. I know it’s an emotional reaction but it seems to me that these people just don’t want to let go and want to continue to blood-suck and influence as much as they can from our club. They need to go and go now. DELAY NO MORE!!!!!!!!!!!!

  • bluenose08 says:

    how do we know its a buyer and not an investor ?

    • Chris W says:

      Good point, if it is an investor are they going to invest in BIHL or BCFC?
      I would hope it is a buyer and all the legalities prevent BIHL having anything to do with the running of the club.
      As I have said before I don’t care if BIHL lose their HKSE status as long as they release BCFC from their grubby paws, they have milked us dry.

      • beegeeblueboy says:

        They are buying 24% of BCFC plc but will pay the purchase price to BIH. After that any money they invest will be in BCFC plc. However when the next accounts are drawn up if there is a dividend declared BIH will get about 70% of it

  • Stan031 says:

    It’s progress people, what’s a few more days after the last 3 years? Whoever invests will want to move to steady the ship ASAP, they will not invest to stand back and watch them drop like a stone! There is light, exciting times ahead now I hope.

  • Blueboy88 says:

    Any purchase was always going to be messy.
    But hopefully we are now approaching first base..

  • Pete Baldwin says:

    Anyone willing to invest in a company of which the majority is still owned by BIHL, is absolutely batshit mental.

  • beegeeblueboy says:

    Fear not. It’s like anything Chinese. As soon as you have had your first 24% you are ready for your next.

  • Andy W says:

    I’m not an accountant or a financial expert so some things about this takeover go over my head. What my own logic tells me is that a 25% stake in a company valued at somewhere around £32 million (for arguments sake) amounts to about £8 million. If, and it’s a huge If, all of that was invested into BCFC it wouldn’t buy us a great deal? The fact is that BIHL need that money to put into new investments, so BCFC won’t get all of it. That makes the picture even worse. I fear that we are going to have much of the same next season, with loans and “free’s” and keeping hold of players that we nearly went down with in the first place. I really want to be positive, but I just can’t see it? Somebody please tell me I’m way off the mark, because as it stands on this news, my money is staying firmly in my pocket.

    • beegeeblueboy says:

      Puffle Andy. Why would they spend £8m (which would go to BIH to help them diversify) and then invest nothing in BCFC? It would just continue the decline of BCFC and be a waste of their money.

      • Andy W says:

        beegee, I’m not familiar with the word puffle, so forgive me. If I read your response correctly, I imagine you are suggesting that the mystery investor/buyer will be ploughing more into the club than the £8 million they will be paying to BIHL. You may well be right. But that remains to be seen. And of course, it will depend on the amount of control over the club that the £8 million buys them? The way this whole process has been conducted, I am still firmly in the belief that BIHL do not want to release the club until they get what they think they deserve. In which case, whoever comes in to potentially take over will still be singing to the BIHL tune until such time as they are ready to let go. And until I see it in black and white I am not prepared to get excited. That’s just my opinion.

        • beegeeblueboy says:

          Andy, like you and most of us I can’t understand why anyone would want to buy an a non controlling portion of BCFC when BIH can’t fund the club.

          The only scenario I can see as a large minority shareholder is a/ some form of agreement on the control of the running of BCFC plc and an agreement in place to buy the remaining shares. If we say the 24% costs £8m that given the above and given the fact that it the medium term it’s doubtful there’ll be distributable profits then effectively they’ve ‘saved’ £24m in buying control of BCFC and can invest some of that before having to pay out the rest. If they have deep pockets as we hope then they’ve just got to manage their cash flow for that future event. BIH themselves need to be sure that the buyer can fund the other 72% otherwise they’re stuck with a large minority shareholder which would make it difficult to sell those remaining shares.

  • AussieBlue says:

    Dan, Mates – I just read the announcement in great detail. The offer was NOT for 24% of BCFC. It says: “The Company received an indicative, non-binding offer from a third party in relation to a possible acquisition of an interest in Birmingham City plc.” Note, ‘an interest’ – not specifying what percentage. Then later it says the board met and: “…it is the board’s view that, if a disposal was to be agreed, only up to 24% interest in BCFC should be disposed of.”
    This indicates that the offer was for MORE than 24%, which makes complete sense as many on here have pointed out – who would want BIHL directors as controlling business partners? It is the BOARD that has decided on the ‘up to 24%’ – not the bidder.
    They then go on to say they will now apply for resumption of share trading and that, mates, is what this charade is all about. Get the share price up again and start selling shares bought for HK$0.10 for .20, .30 or wherever it goes.
    They are playing HKSE like a fiddle; they are playing our hopes the same way. Same old shenanigans, same game of catch-us-if-you-can, same old sh*te.

  • Aussiebrum says:

    Shares have been re-listed today. In early trading in HK, the shares are at 17.2 a massive increase of 40% today.

    • AussieBlue says:

      They’re off a bit at lunchtime Aussiebrum, but still 30% up. In morning trading, BIHL represented the highest volume of shares changing hands on the entire HKSE, and the 4th highest gainer in % terms. Sort of backs up my previous point? It’s all about making money on the share market and BCFC is the football being kicked around….as always with BIHL. Two bob says the 24% so-called offer will fade away to nothing.

      • Art says:

        I really do hope you are wrong but with the absence of any annoucements you could well be right.The nightmare continues and if you are right I urge all supporters not to give these vultures any more money.

        • AussieBlue says:

          I hope I’m wrong too Art. I really want to be proven wrong on this one but it’s walking like a duck, looking like a duck….you know the rest.

          • Art says:

            Yep-I fear the worst.

          • Lesley Palmer says:

            I am surprised that the HK stock market does not have very stringent procedures in place to stop share price manipulation. However all that has happened since the shares were relisted suggests the market is extremely volatile and that if someone wanted to manipulate the market for their own advantage that it could be done fairly easily.

          • Art says:

            Yep I entirely agree and the fans are just pawns in the financial wrangling.

  • Alex T says:

    If the mirror story is true, re. The ridiculous wage cap I beg all blues fans to stay away from stans until this farce is sorted and the new (part) owners are running the club. There is no other way we can force these jokers out!!! DELAY NO MORE

    • Alex T says:

      actually, on further examination of the Mirrors ‘investigative’ journalism, its just re-gurgitated crap we already knew. £5k a week wage cap per Player (not squad – thats how it read to me) and yes, the wage bill will be reduced by 25% when Zigic’s wages are taken out of the equation.
      Not to self…… do not read inflamatory articles at 6:30am!!
      Original sentiment still stands though! ;)

      • Paul Carter - Voice of Reason says:

        What an embarrassing thing to do, believe the Mirror and base your support of the club on some rubbish article from some cockney paper. All these posts plotting against the clubs cash flow concern me. YOU stay away from the club Alex the rest of us want to support our team

        • Alex T says:

          Up yours Paul. At least I corrected my mistake….. you still bang the same pathetic drum no matter what the evidence. People like you are killing the real BCFC… your just doing your best to prop up the regime with your pitiful soundbites

          • Paul Carter - Voice of Reason says:

            Hahahaha what’s up Al you True Blue you? Been shown up have ya by the Mirror. The real BCFC you wouldn’t know anything about. Keep urging the boycott Mr Loyal (so long as the Mirror says it’s ok :) )

          • Alex T says:

            I refer the right honourable gentleman to my earlier comments…… hurry up and GET IT!!

  • Art says:

    Bad news after bad news-can the day get any worse?

  • Agent McLeish says:

    No season ticket for me until the BIHL sharks are gone. It’s the only protest I have left and I’m not putting another penny into their sweaty palms. These idiots have ruined our club and are now making a mockery of the fans, the manager, the staff and the name of our beloved club. I also don’t believe that they have to retain a portion of the club to maintain HKSE status, that is a red herring and there are other reasons for this which are not immediately obvious.

  • Dave Clamp says:

    apparently lee clarke has to slash the budget to a quarter of las season and reduce the playing squad to 24 reperted by the mirror this morning and is to rely on loans. certainly not what i was hoping for your thoughts dan???

  • mark says:

    Well the wage bill going to be slashed further…….hands up who thought they were shipping out….oh well might get a even better seat now…….

  • ChrisWintle says:

    It,s a start

  • mark says:

    It be nice seeing the young kids develop…i believe the books will be in order by the 30

  • mark says:

    World war. Three wouldnt stop me see the blues lol

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