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Yang Yuezhou Becomes Largest Shareholder in BIH
Birmingham International Holdings disclosed to the stock exchange today that the second conversion bond issued by the company following the EGM of February 5, 2014 has been exchanged for shares.
The disclosure confirms that 1.5billion new shares have been issued taking the total BIH shares in circulation up to 6,981,086,733. The shares have been issued to U-Continent, a British Virgin Islands company wholly owned by Yang Yuezhou.
Before I go any further into this post, I want to remind people my usual caveat that I’m not an accountant; that I’m just working on what is available in the public domain and what I’ve been advised and that people should treat what I write accordingly. I’ll add that if you don’t care about ownership this is probably going to be the most boring post ever so please do something more interesting instead.
What does all this mean?
The biggest thing we can take away from this is that as of this moment, Carson Yeung is no longer the largest shareholder in BIH. Following this announcement, Yang Yuezhou with 21.48% is now the largest shareholder; Carson is second with 19.93% if you include the shares he holds via his British Virgin Islands holding company Great Luck Management Ltd. The current breakdown of major shareholders (as I’ve best calculated from the various disclosures that have been filed is below).
| Shares | Owner | % of total |
| 6981086733 | Total shares | 100.00% |
| 1500000000 | Yang Yuezhou | 21.49% |
| 603001006 | Great Luck Management | 8.64% |
| 788453866 | Carson Yeung | 11.29% |
| 329054000 | Luo Chao Kui | 4.71% |
| 453237000 | Liu Xingcheng | 6.49% |
| 391600000 | Lyu Yobo | 5.61% |
| 326646000 | Liu Yuanjiu | 4.68% |
| 163800000 | Premier Rise Investments | 2.35% |
| 2425294861 | Public | 34.74% |
It’s worth noting that doesn’t take into account the 6.45billion shares Carson has yet to convert from his debt conversion bond or the 3.67billion shares Yang Yuezhou has to convert from his two conversion bonds.
Does this mean the club is being taken over by Yang Yuezhou?
No.
What is happening then?
That’s the $64,000 question. This was always going to happen as the shares had to be converted within a set time period; the big question is if Yang Yuezhou will now dump them on the open market to make a profit, or if he will hang on to them.
What is known about Yang is minimal. We do know he’s a property developer in mainland China and that he’s invested in BIH before (along with another listed company in HK called Computech). However, we don’t know much more than that – and I don’t suspect we ever will. From the little I gleaned from various meetings in Shenzhen last year he’s got no interest in BCFC and no interest in BIH other than as a vehicle to raise money on the HKSE.
However, there is one positive possibility. As I understand from various sources it requires a shareholder meeting to remove Peter Pannu from the BIH board; furthermore I’m fairly sure (although I cannot say for a fact) that Yang was not of a favourable opinion of Pannu. If there was to be a shareholder meeting, and Yang didn’t like Pannu, it would mean a big bloc of 21% votes going against the former policeman making the job of removing him somewhat easier.
Does this mean Carson has lost control?
Sadly, no. Carson has nearly 6.45billion shares available to convert himself following the novation of his loan to BCFC and like a game of poker, he can easily up the ante by converting some of his own shares and becoming the largest shareholder again. That being said there does come a point where too many shares are concentrated in too few hands and the HKSE will force the sale of some of those shares. At the moment the public float is around 34.74%; if that dropped below 20% due to further dilutions I could feasibly see the stock exchange step in.
So what next?
I think there are two things to watch if one was so minded. Firstly, the share price in BIH; I suspect it’s going to go down further because the ordinary shareholder has just seen his stake in the company devalued further and might want to bail. Secondly, whether Yang Yuezhou does indeed sell any of his shares – which would affect the share price further as it would probably be hammered by him dumping another load on the open market. If Yang does hold on to them then the question would be if he is indeed looking to take bigger control of affairs or to use them to vote in any upcoming EGM/SGMs.
Tags: BIH, Carson Yeung, HKSE, Yang Yuezhou
34 Responses to “Yang Yuezhou Becomes Largest Shareholder in BIH”
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It’s all starting to remind me of that Limahl song.You know the one.Never Ending Story.
What amazes me is that if an intelligent person with money to invest and considerable acumen has the whole financial world as his oyster, why on earth would they wish to buy shares in a lost cause, especially someone who you say has absolutely no altruism towards BIH or BCFC?
He has bought them at half the current share price so presumably thinks he has a bargain and/or will look to sell them at a premium to the price he paid.
Property developer now having major shareholding, east side development likely to make value of St Andrews a prime target. Forget the football.
Just a thought Peaky Blinders themed hotel
It amazes me how Carson Yeung can still hold the majority shares and be in prison at the same time.
He obviously still has a major say in proceedings even though he can’t attend meetings.
If it is a ploy just to get rid of Pannu then great, but I should imagine there is some ulterior motive behind the purchase of so many shares.
KRO+DNM
Thanks OP, the blog was simply put and wasn’t in the slightest bit boring… even for an old duffer like me. ;-) Cheers.
Just gets better doesn’t it Ladies/ gents. Unbelievable! KRO.
I think we all know by now, that with this lot in charge, things can only get worse. The only consolation is, that things usually get worse before they get better. Fingers crossed.
They have been doing that for a long time now.
Daniel;, what date will this meeting be held,?. T hen we may become wiser .
Staffs,couldn’t have put it better meself..
Dan thanks for the info tomorrow will be interesting with reference to the share price the bottom could fall out of this one, my personal opinion of course.
Share price was stable during morning trading with only a 1% fall – only small volumes traded
Latest -Down 1.64%.
Great article Dan -I’ve stopped second guessing the outcome as these people are totally unpredictable and lack transparency.
Carson Yeung is obviously hoping to keep the current status ticking over for another 5 years!
Maybe Yang is looking to lodge an eventual take over?
Maybe Yang is looking to lodge an eventual take over?
You state that Yang has no interest in BCFC or BIH other than that as vehicle to raise money on the HKSE.
If this is true it must mean that BIH is a good bet for raising money on the HKSE, which could be construed as positive.
Share price falls by 3%.
Incidentally, nice to see Gold and Sullivan’s lot move quietly up to 7th place in the prem, with Zarate doing the business and a shiny new stadium to come.
I do sometimes wonder if Mssrs Sullivan and Gold feel proud of selling the club down the river to this rabble. They may have been well known in the porn industry before they took over Blues but those two and Brady were household names by the time they sold us. They made plenty of money off the back of that as well as what they made from the sale. You couldn’t make it up really that the destiny of the club is in the hands of these useless, unscrupulous chancers.
The Golds,Brady and Sullivan were professional business people who transformed our club which at the time was on its knees.
Wish we could get them back or buyers with their ability.
Current owners couldn’t run a corner shop!
I would have them back tomorrow. They were good for Birmingham City but Birmingham City were good for them and massively raised their public profile. Didn’t they have a duty of care to whom they sold the club to?
I don’t blame GSG, if someone offered you more than double for your house would you say “Er, No thanks. They were business people through and through, they did a pretty good job and left the club in a far better position then when they took over.
The people I blame are those who performed the “Fit and Proper” and “Due Diligence” tests, along with the small element of supporters who called for them to leave.
KRO+DNM
I totally agree. If you’re selling a business and someone offers you more than what it’s worth, you take the money no matter what, unless you’re really stupid that is. As you say Chris, it’s completely up to the football authorities in this country to stop undesirables taking over our clubs.
if this carries on for another couple of years Dan you will have to write another book !!
Unfortunately it might be called The Death of Birmingham City Football Club if we can’t get rid of this lot ripping the heart and soul out of the club. We need someone with more money than sense to make BIHL that they can’t possibly refuse or the Football League to grow a pair and do something to save one of its members.
This really changes nothing as he won’t be putting any money into BCFC but probably puts BIHL on better financial footing. Probably means the club is even less likely to be sold.
He’ll sell Stans for redevelopment
but he’ll have to be majority shareholder first
me still thinks Carson is yet to continue to play his part in the great shake up of things within BIH
I don’t think many people doubt that anymore…. except those doyens of wisdom at the Football League. They’re in a league with Pannu in us not knowing what they actually do to earn their wages.
SORRY Daniel must say how unlucky the blues ladies were this evening, if only carney had score from the penalty it would have been blues title to lose…..But well -done the the ladies anyway kro…..
What i don’t get is we are reportedly losing 1m. Pound a month,they,re releasing bonds for shares for
more mysterious persons and again nothing changes,nothing will change. If the FA and the Football league seem to think that our wonderful football club is being run correctly then they either don’t want to know because us or they are totally deluded. I know people have sited Bolton,s debt as well,but I,m talking about us here. KRO.