Often Partisan

BIH: No Discussion With Any Parties in Relation to a Sale

Birmingham International Holdings have today confirmed to the stock exchange that the sale of BCFC is still “a last resort” to the receivers and no discussions have been entered into with any parties over the sale of the club.

The short announcement confirms that:

The Receivers are open to a wide spectrum of options to preserve the value of the Company as a whole and in the interests of the Company and the Shareholders as a whole. Disposal of interests in BCFC would be a last resort to the Receivers. The Receivers would like to confirm that they have not commenced any significant discussion or negotiation with any parties in relation to the sale of the Shares and equity interests in BCFC. Further announcement will be made by the Receivers in accordance with all applicable requirements of the Listing Rules as and when appropriate.

This effectively confirms that the rumours with respect to an imminent sale of the club are unfounded.

The announcement also confirms that Anthony Cheung Kwai Nang has voluntarily stepped down.

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62 Responses to “BIH: No Discussion With Any Parties in Relation to a Sale”

  • Graham says:

    That’s annoying

  • Offtopartiesand says:

    Now I don’t know an awful lot about the legal proceedings and so on, but with these receivers in atm, and the people they have removed/resigned….what’s to say they won’t come back after the receievers go.

  • Dale says:

    Anyone else feel like this will never ever end? we can never progress as a club until ownership changes.

    • Mark fewtrell says:

      Is ther anyone who does not feel like that

    • Stephen Wood says:

      The Club has been on a financial downward Spiral Ever since Gould & Sullivan sold out. Its hard to feel optimistic while the Current regime are in Situ. They have bought misery to a Proud Club . What is more confounding is that there seems there is no light at the end of a very dark tunnel. It seams Money rules the owners head & to Hell with those that matter most the fans and their Club!

  • WalmleySteve says:

    Doesn’t surprise me at all. I have failed to see why any of the recent developments necessarily constitute ‘big news’ and increase the probability of the club being sold. E&Y had the power to act as though they were the sole directors on the Board anyway, and surely their role is purely just to ‘clean things up’ from a financial and governance perspective, get the shares re-listed, install a new and reputable board of directors and then ride off into the sunset with a few million quids worth of fees in their back pocket (and to the extent that BIHL can’t afford to pay the fees, then players will have to be sold in the summer to meet them). We’re then back to square one – i.e. a parent company that has neither the will nor the financial means to invest in the club, and nor is it able to sell the club without being delisted. All we could hope for is that somebody tries to take over BIHL once it’s been cleaned up but it sounds like Yeung and his wife’s brother wouldn’t be willing to sell their holdings anyway so it might be difficult to purchase a majority of the shares and gain control.

  • Blue Steve says:

    What options do the receivers have other than to sell BCFC? Another share issue ? Those 2 appear to be the only option to me. There is no working capital to diversify.

  • Bluenose 1 says:

    That’s because they are never going to sell the club we are stuck with these people until we go bust unfortunately.

  • AJ says:

    Carson will wriggle off the hook no doubt, I didn’t think and still don’t that this will have a happy ending at least for a long while yet. Their is no way Carson will sell unless he’s forced to which to me anyway seems very unlikely.

  • Ken says:

    I think the actual wording of the announcement is the most important…in the first sentence they say they are “open to a wide spectrum of options” and in the third sentence they say they have not commenced “any significant discussion or negotiation”. I interpret this first sentence as coded message to encourage prospective buyers to put forward their proposals for consideration and the third sentence is inferring that some discussions have taken place but with nothing firmed up at present….

    • almajir says:

      No, I think you’re seeing something that isn’t there.

      They’re looking at all their options and they haven’t started any sale process with anyone. Have to do things by the book.

      • AussieBlue says:

        Exactly as I read it Dan. A “well they would have to say that wouldn’t they?” moment.

      • Ken says:

        No, I dont think Im seeing something that isnt there. You have to ask yourself, what is the purpose of E&Y issuing this Announcement? Like all of us, we do not know the intimate details of anything relating to whatever process E&Y are following but i doubt they see it within their remit to publish progress reports of….no progress! That doesnt make sense. I retain the belief that this Announcement is carefully constructed to serve many purposes….one of which is to encourage proposals for purchase rather than their being seen to actively pursue them

        • almajir says:

          Maybe the purpose was to tell people they’re not selling the club (yet)?


          • dutch says:

            exactly my thoughts… these people will know what we are all talking about and they read papers! I think patience is key here and we will all get the outcome we want! all I think is when these companies do this kind of thing, it comes with a fee… there will not be a never ending pit and E&Y will know how and when they can get paid!

  • Blueboi14 says:

    One thing this statements confirms is that E&Y have the power to sell the club. This is something we weren’t sure of because of the confidential agreement that the courts, directors and E&Y were only privy to.

    • Wicklow_Blue says:

      Unfortunately I’m not sure it does mean that…

      I think it makes it clear that they have the ability to negotiate the terms of a potential sale but I still think that ultimately the deal needs to be acceptable to the majority of shareholders. I don’t see how E&Y can force CY to sell his shares and this is why there has been previous references made to the need for compromise.

      I hope I’m wrong, but I don’t think I am.

      • Adam True Blue says:

        As I mentioned in an earlier conversation, E & Y have the power to force a compulsory repurchase of shares at their face value,what I do not know is where the funds would come from to finance such a repurchase. Kro.

        • Wicklow_Blue says:

          Thanks Adam,

          If that’s the case then surely the money to compulsory purchase the shares would come from whichever group / consortium / body or individual E&Y had lined up to buy out BIHL and ultimately take control of BCFC.

          Share price at the time of the recent suspension was 0.067 HKD. Cant recall how many shares had been issued by BIHL so not sure what ‘face value’ would amount to, but would have thought anyone serious about buying the club (via BIHL) would have an idea of the value that was likely to be required and if what you are saying about compulsory share purchase is correct that this money could then be used by E&Y to force the deal through.

          Hope you’re right Adam because then all we would need to happen (assuming that there are purchasers out there) is for E&Y to decide that the sale of the club really was in the best interest of BIHL.

          • Wicklow_Blue says:

            Sorry Adam, just read your post again and started thinking that maybe ‘face value’ and current ‘market value are not quite the same thing!

            Not too familiar with the murky world of corporate finance…although learning more and more each day as this debacle refuses to go away

          • AussieBlue says:

            Wicklow: approx 9.6 billion shares issued. Face or ‘par’ value HK 1 cent each. Or about one-tenth of a pence each.

          • Wicklow_Blue says:

            Well there’s the problem then.

            9.6 billion shares at 0.067HKD and with an exchange rate of around 11.55HKD to the £, would value the shares at £55.7 million. Even a die hard blue nose realises the club is unlikely to be worth half that. I’d assumed that the way the shares had fallen so sharply before they were suspended (they were valued at nearly 0.3HKD in early 2014), that the share value would have been a lot less and would have left the door open for a compulsory share repurchase.

            Oh well….

    • almajir says:

      They still have to go through the normal procedures which include gaining shareholder approval…

  • Jaffa says:

    Would it be beyond the realms of possibilty that Carson gets off the hook and ploughs money into the Blues.

    • AussieBlue says:

      Not at all beyond the realms of possibility, Jaffa. **sent from my Pan-galactic Nebulae Phone from planet Luftschwein, currently orbiting Alpha Centauri**

  • Stevie W says:

    The sale of the club was never the reason for E&Y being brought in I don’t think I have seen anywhere that the intention was to sell the club.

    The club sale thing emanated from the peddling of buyers in the wings by those who are supposedly in the know.

    Again we are back to uncertain times with nobody knowing what is going to happen next.

    I still believe we will end up in a very good place but not as many think.

  • Bluenose1 says:

    It’s strange they are Saying their have been no firm bidders yet the people that are in the know are saying people that want to buy blues. I think they are all having a laugh at the fans expense. It’s just becoming boring and all this messing about is going to do is make more & more fans stay away from the club.

    • Adam True Blue says:

      Anyone is free to speculate, and that’s what we have been seeing a lot of, you can see how many straws desperate fans will clutch at! Kro.

  • Richard Barron says:

    Surely, Ernst and Young are there to sort out BIHL, not BCFC.

    If keeping BCFC keeps BIHL ticking over, then surely they will keep it, which is what looks to be happening, and why Panos is still at St Andrews.

    There has been no talk from E&Y over selling Blues – as fans and the local media; we have all got carried away thinking that this is the case; when all they are there to do is sort out the mess at BIHL.

    I could be wrong, but that is how I see it.

  • rhees says:

    Blueboi 14 that’s a very good point and as Dan says they have to explore all options first selling the club will be there last option they will have to justify
    Even though I think its inevitable

  • Bluenose1 says:

    I can’t work out what options these people have the way they have conducted themselves over the years would anybody be interested in their business nobody with any sense would go near these people with a barge pole. Like people have said the only thing keeping them afloat is the football club so they will just carry on bleeding it dry until their is nothing left and we end up going bust their is never going to be a good ending for blues unfortunately.

  • Blue Steve says:

    The receiver were bought in mainly so that the anti Carson faction of the BIHL board can wrestle control away from him. If that means the control goes to the receivers then so be it as along as Carson does not have control. What the anti Carsonites hope to achieve afterwards I have no idea. Do they want to sell the club?

  • Oldbluenose says:

    As many opinions are being being expressed both here and elsewhere, My thoughts are as follows,

    There ARE people who are making inquiries, Thereby, I would think some are ” registering ” an interest with E_Y, Pending a possibility of a sale of BCFC, sometime in the future,??????. ,

  • markymark says:

    CY is going to win his appeal, storm back into BIHL remove all the directors replace them with his evil
    sidekicks and we will be back to square one, E&Y will walk away with the nice little earner and we will
    remain stuck in the brown stuff. Dont know what everyone is getting excited about.

  • Bluenose1 says:

    Markymark I think you might be spot on mate the whole situation is a joke and I think it’s just going to get worse.

  • Dave Mann says:

    I could not agree more markymark … I said all along that there not gone until there GONE and they are not going anywhere do blues fans had better get ready for more sorrows than joy over the next 5 years because we’re stuck with them for the long term by the looks of it …. Enjoy the rest if the season !! Kro

    • Markymark says:

      Dave, as I’m sure your aware the major shareholder ultimately has the power full stop. He can manipulate the company and its board anyway he wants. We need to hope and pray CY losses this appeal because if he wins were doomed

  • martinrussell says:

    Its said,as we all know,that we have sufficient funds to complete the season….Then what? ……

  • AussieBlue says:

    I think many on here are reading too much into this; as if the club is ‘not for sale.’ The paragraph before the one Dan quoted (which in itself said there are no ‘significant’ negotiations, not that there are not any at all), goes:
    “Since the appointment of the Receivers pursuant to an order granted by the High Court of Hong
    Kong dated 16 February 2015, various parties have expressed interests to the Receivers in acquiring all or part of the equity stake in the Company and/or its interests in Birmingham City Football Club.”

    Various parties? Sounds like a queue to me. Any savvy owner/board will play it cool and not paint a fire-sale picture for an asset. This announcement satisfies HKSE rules and gives E+Y time to prepare proper accounts. It is those accounts that will show whether the ‘last resort’ is necessary or not.

    So let’s not panic or go into a funk. KRO eh?

  • Ian Ambrose says:

    Where proof statement black & white and sign on hand out ?????… Am not waiting until next 5 years NO WAY and sort life make worse less less blues fans bring at bcfc NO GOOD cos CY & PP !!!! … BEST SELL BCFC CLUB before new start season bring new players and Who someone takeover at bcfc NEW FRESH and BRING BRING BLUES FANS is true !!!…Get out CY and PP!!!

  • BigAl says:

    The last two announcements by Dan have dampered the expectations somewhat! As Dan said unfortunately no one over here knows what is going on over there. The receivers have found something which instigated the removal of Pannu, and suspension of two directors.Again what that is we don, t know. However, as I stated earlier if there have been financial irregularities by Pannu and other Yeung supporters surely Yeung will be implicated! How this affects anything I don, t know but I would not have thought the courts would look at the situation in a good light. Even if Yeung wins his appeal , would the prosecuters appeal the decision! It is still ifs and buts! The receivers have said they are exploring all possibilities , which I presume means ensuring the company is financially viable, again we just don, t know how or where all income is coming from.I just don, t see how they can get funds from share sales , who would want to invest in BIHL when at the moment when the value of BCFC is dropping day by day. The receivers have said there are no negotiations at present with prospective buyers, and any sale of BCFC would be the last resort. They have not said the club would not be sold, obviously the decision re Yeung will have a bearing on what happens but I do not think it is going to make that much difference. E/ Y obviously have some plan in mind whatever it is , it will be done correctly and the courts will be fully informed of all details. At the end of the day I still think BCFC will be sold, I just cannot see the court allowing Yeung to continue where he left off. Surely he will have to convince the receivers/ courts he has a viable plan with funding from legitimate sources, to coninue running BIHL . Perhaps the receivers have investors in mind this would not necessarily mean the sale of the club, but as someone said earlier, who would want to invest whilst Yeung was still involved. Who knows , everything is speculation , no one knows apart from the receivers.

  • viperblue says:

    remember that with carsons full backing we won the cup and went into Europe
    so if he gets let off and has funds(almost certainly) then he would probably invest in the club.
    So maybe better the devil you know, I can not believe I just said that
    I obviously need an intake of alcolhol

    • Hillfield Blues says:

      OMG!!! Had enough for one day. Going to bed.

    • Blooflame says:

      Are you serious? You HAVE to be writing this from HK!!

      • Luke says:

        I think there’s a valid debate to be had there. If Carson’s appeal is successful, he is an ‘innocent’ man who has previously invested heavily in the team.

        Suppose next season he’s survived the E & Y period and invests (more modestly this time, obviously) in the club. If GR can sign a few good players, keep his brand of entertaining football going and challenge for a top six place, what would we have to complain about?

        Where did it go wrong for Carson, in terms of his relationship with the fans?

        1. He is an appalling communicator.
        2. Regardless of the outcome of his appeal, we don’t trust him moving forwards.
        3. He made bad decisions (or was unlucky – you choose) that led to our relegation.

        Point 3 could be the crux couldn’t it? If we were still in the Prem, would we be backing him and hoping his appeal is successful?

        • dutch says:

          surely it was Alex McLeish leaving Kevin Phillips on the bench that lead to relegation! we didn’t win a game after the cup final… now I am not defending CY but how was that his fault after he had just bank rolled the January spending?

          We had Aleksander Hleb on loan from Barcelona…. BARCELONA!!!

          • Luke says:

            Well, you could argue that not changing the manager sooner was a mistake.

          • Dave Mann says:

            dutch, that’s a fair point but I think the whole team including manager and players got us relegated and not just Alex mcleish and Craig Gardner ( against wolves) … They switched off and we suffered for it then and are still suffering now !! Kro

          • Strettonbluenose says:

            I like to blame all our exes that bad mouthed the Blues after they’d gone, like bowyer and jerome but most especially johnson.

  • tamuffblue says:

    Just like the forthcoming election the people will hold the power and NO ONE can deny this
    So Mr Carson and cronies BEWARE !!!!!

  • Mitchell says:

    E&Y are playing good game. Their £2m. Fees have to come via Club sale. They are not here to sort out a few Board quarrels at that price believe me. We cannot afford that luxury. To me the facts are very clear. They ARE here to sort out new buyers, but not let CY and co. know everything. We are in a good place believe me. sleep easy fans..new Buyers in before Wolves game that ‘so my prediction.

  • DoctorD says:

    Still finding it hard to think what the “wide spectrum of options” could be to retain the value of BIHL. Dan…when the receivers say the are “open” to those options, who would be coming up with them? Outside inveators? Yeung? Themselves?

  • craig says:

    Lets not panick just yet. There is a long way to go and most of it is still speculation. The worst case scenario is carson yeung gets released and takes back control with his shady directors. Lets not forget us fans will then possibly have a big influence and could make there lives a misery like they have made ours. No fan support no money, hit them where it hurts and protest but for now lets get through the season and see what actually happens. Kro

  • Blooflame says:

    The term “No Significant” discussion or negotiations is a good sign really. I’m wondering if the usual suspects were back trying to buy the club but were found out by E&Y to be coming up short? Either way it tells me that E&Y are working in the long term interests of the club.

  • Dave Mann says:

    Luke it would have been madness to chance a manager that just one won our one and only proper major trophy for crying out loud!!!! Kro

    • Luke says:

      I get that. I didn’t really mean to replace him during the final couple of months of the season but, given the level of investment Carson was making in the squad, I was surprised he didn’t replace McLeish during the winter beforehand. The club was yoyo-ing between divisions and, despite a strong performance the previous season (finishing 9th), it wasn’t looking good. Maybe Sully & Gold should have replaced him the first time he got us relegated.

      They say hindsight is 20:20, but I never thought McLeish deserved Carson’s trust.

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