Often Partisan

BIH Announcement re Sale of BCFC

Birmingham International Holdings have made a large announcement to the HKSE with regards to the ongoing suspension of the company and the potential sale of BCFC.

The announcement, made very close to the end of the working week in Hong Kong, goes into detail about the company’s efforts to regain listed status on the HKSE.

Of specific interest to Blues fans is the fourth section, where it confirms that

The negotiation with one of the parties in Hong Kong is at an advanced stage although no conditional binding agreement had been entered into between the parties. The transaction, if it proceeds, will constitute a very substantial disposal transaction by the Company under the Listing Rules and will be subject to the approval of the shareholders in a general meeting. A detailed announcement will be made as and when appropriate.

It goes on to say

The Board further wishes to urge the shareholders not to react to speculative media reports and to rely on official announcements. Any prospective buyer(s) of BCFC or any prospective investor(s) in the Company trying to achieve the same objective will be carefully scrutinized and appropriate announcement(s) under the Listing Rules and/or the Hong Kong Code on Takeovers and Mergers and Share Repurchases will be made where applicable and where appropriate.

This is a clear shot across the bows of Paladini and his announcements in the media here about the purchase of BCFC. It’s worth noting that as of yet no one knows of any HK company interested in the purchase of BCFC and it will be interesting to see how that pans out.

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68 Responses to “BIH Announcement re Sale of BCFC”

  • Oldbluenose says:

    Almajir;, Could that possibly mean that perhaps any ” interested parties “, May not actually be Chinese at all, ?.

  • bluesbot says:

    Would BIH have to give more specifics RE the interested parties to the HKSE, so not to use HKSE for their own smoke and mirrors advantage ?

  • crother88 says:

    whats with all these games doin my head in

  • Gibbsy says:

    I found this Paragraph particularly interesting

    The Board wishes to inform the shareholders that the criteria that the Board shall adopt in this disposal would be to identify a new owner who could take BCFC to the next level both in terms of their financial standing, business acumens and overall suitability and the nature of their offer and the overall terms of the offer.
    A balance will be struck between what is the most beneficial for the shareholders and what is the most appropriate for the development of BCFC as the Board acknowledges that football is a business where, inter alia, the aspirations of the fans need to be considered.

    Sounds promising if it is true

    • almajir says:

      IF it is true…

    • Benno says:

      To be honest, that is the job of the directors, a job that Pannu realises. He takes some flak, but he knows for a fact that the best assets a football club has, are its fans.
      Temper that with the fact that the “next level” could be a 4 year old with a NatWest Piggy.

  • Graham Woodward says:

    probably selling to Carson’s trouble and strife

  • Ainsley says:

    Now it’s obvious why he treated Paladini like he did.

    Anyway, Hope it comes good

  • tamuffblue says:

    desperate men who have had the wind taken out if their desperate sails thanx to the judge who has seen through their charade

  • Jason says:

    Also look here “Given the fact that confidential non-disclosure
    agreements had been entered into with three of the parties who are still in pursuit, two in Hong
    Kong and one in the United Kingdom”

    Is the UK one not Paladini?

  • Smokin says:

    Well done Almajir,

    The statement makes interesting reading, and given the mess BIHL are already in with the HKSE, I have to say I believe the contents (though not necessarily the bit about taking the interest of the fans into account!)

    I am particularly interested in the bit about a HK body being interested. The fact that we have heard nothing just suggests that they abide with Confidentiality Agreements, something our Italian friend doesn’t do. In the business world, confidentiality does not mean talking to Tatts or Tom Rossor even OP!

    KRO

  • Grizzly says:

    There are a few pertinent points raised by this announcement. Firstly one of the conditions for the re-listing of BIHL shares is:

    “demonstrate circumstances no longer exist to suggest that there may
    be significant deficiencies in internal control systems and there is no reasonable regulatory
    concern about management integrity which will pose a risk to investors and damage market
    confidence.”

    This may prove difficult given the recent details behind BDO’s resignation as auditor of BIHL citing concerns over the internal controls of the company and the inability to obtain reliable audit information.

  • Grizzly says:

    “The review will also cover a number of past contracts entered into by the Company to
    identify if there had been any breaches of fiduciary duties by the past/existing directors
    and to identify if there had been any loss suffered by the Group as a result and further to
    see if any actions could be taken against those concerned.”

    This is also clearly a reference to Vico Hui and the Xtep contract, which intimates Pannu is looking for a way to sue him.

    It also goes on to mention they will review the purchase of BCFC in 2009, it’s interesting as further action is mentioned regarding the due diligence taken by BDO and the goodwill the board gave to the previous owners, especially considering the “impairments” made after the purchase.

  • Agent McLeish says:

    Almajir, is this just conincidence or could this move be directly related to the court decision yesterday?

    • almajir says:

      Honest answer is I don’t know. I don’t think so, but it could have been a factor

      • Agent McLeish says:

        Hopefully the so called HK interested parties are not CY stooges which I think may be the case. As you say who knows but it all seems a bit fishy.

  • prewarblue says:

    While extremely glad regarding this announcement,,,,,,can I add a dampner to the possible euphoria regarding it ,,,,amnd the mysterious HK based bidder,,,,,the Pompey former owner is HK based ! and we know what he did to them,,,,if it turns out he has anything to do with the bid,,,,,frying pan and fire spring to my mind instantly,,,,,Paladini for all his unpopularity is at least U.K based and therefore subject to U.K law

    • steve-0 says:

      If you are right, then let’s hope the “fit and proper test” the FA enforce will prevent such a takeover.

      • Bluenosejohn says:

        In view of the FA’s past history on fit and proper persons I wouldn’t expect any help from them as a quick check on anything to do with Portsmouth for one will show.

  • Eric Jones says:

    The secret nature of being owned by the Chinese owners makes me miss our old owners and the Paladini group. I for one do not want to be owned by a Chinese group. I would rather be owned by a mere millionaire from the UK even if we have to go down. I love what the old owners are doing for WHU in part because they have always been fans of that club. Trevor – can you get a group together so that we can be British and proud of it. The fans would back you to the hilt. All this foreign ownership scares me!

  • tamuffblue says:

    sullivan was Cardiff when it suited him

  • Kaje says:

    Could the interested parties simply be someone within BIH looking to replace Yeung as frontman?

    I’d really rather we didn’t have HK based owners. Seems a little too far way to be efficient or transparent.

  • Atahualpa is a BlueNose says:

    Almajir,

    Still don’t believe they will sell. It’s more than likely to be an ‘investment’ from someone and/or an organisation. Some weeks ago late one evening, some ‘VIPS’ were wined and dined and shown around the club.

    As PP is trying to get the suspension of shares lifted for BIHL and get some structure with their cashflow issues, it’s pointing more and more to CY trying to hang on in some capacity.

  • tamuffblue says:

    Atahualpa I think your bang on the money with your post !!!!!! although I feel he will have to sell eventually

    • Atahualpa is a BlueNose says:

      Even CY has more than likely realised now that he can no longer fund us and the longer it drags on the worse the situation will get. I believe that the £40m figure CY put out as being what he wanted, was as a challenge, even a deterrent , to anyone interested in trying to take control. He was never gonna give up without a serious fight. Even if he gets sent down, he may attempt to continue his influence through PP and his own son Ryan who are both on the board of our club.

      To someone trying to purchase BCFC, they would need in the region of about £30 – £35m to cover the purchase, debts and to fund the club until the end of the season. For a ‘few’ million pounds they could get a decent stakeholding which would help cover costs for CY and BIHL, and would ensure that the jewel in CY’s fast diminishing empire remained partially in his hands with the possibility of its star rising again in the future.

  • Paulo says:

    ‘Re-sale’ of BCFC ..? For all we know, PP always had an objective to sell to his preferred choice, even if there ever was, or still is …a HK connection. Either way, the plot thickens.

  • steve-0 says:

    It really does get you thinking of all things dark when a HK consortium is now the front runner. Let us hope that there is no connection between CY and these new potential buyers. If there is then there must be some investigative work carried out before any takeover is granted.

    Mind you, I’m sure this is a realisation of these people and any tracks will be nicely covered over.

    We may be the clubs biggest asset, but we are pretty helpless in these situations; other than wait and see there is nothign we can do.

  • Evesham Blue says:

    HK consortium front runner now? Call me niaive but I seriously doubt we are going to get a clean break from the old guard. At least Paldini represented was this – but it is apparent that this a deal so CY stays on in capacity? Closing ranks by looksof things?

    Paladini has no chance in taking over now on the face of it

  • Art Watson says:

    Given up on second guessing this lot now.

    It’s all above my humble intelligence.

    Let me know when it’s all over .

  • freddie says:

    comment edited

  • pipsy says:

    Supported the Blues for 58 years through the high and and mostly lows, I have been reading all of the comments made and all of the anti Young brigade, we all welcomed Young when he took over from the Cockneys until he was arrested on Money laundering charges. We are all aware he overspent on buying players and paying out large sums for wages and loans and lost our Premier place. Parachute payments were not going to help pay the deficit and I agree we are in a mess financially and need a new owner. Young is due in Court next week to answer the charges and at this moment he is innocent until found guilty ! ! or is he ? BCFC forever

  • Louise says:

    I do wonder whether it is a cover up for Carson to keep a stake in us. If he did have the money then I’m sure he would have seen us ok. He must have at some point, had blues in his heart for him to borrow money against his home and that does say to me it was more than a business for him.
    I cannot help but feel sorry for the guy. I know he is in some serious trouble but time will tell if he’s proven innocent.
    I don’t think he can carry on in any capacity now. There is no way he’d be welcomed back to St Andrews, so it’s probably best for him to let go. I sincerely hope he does one last thing for us and sells to a buyer who will back us and take us forward, that’s all I ask of him now. For all his faults he has pumped money into the club and gave me the best day of my life as a proud Bluenose, which I’ll be eternally thankful for. It was just a shame the manager wasted it and got us relegated!

    Goodbye and good luck Carson, you will never be forgotten in BCFCs history that’s for sure!!

    • Oldbluenose says:

      Louise;, You spelt out my feelings on the whole matter with feelings, — Well done lass, !!.

      The worst that C,Y. ever did was nievity, mainly the price paid for us, All talk of him ” milking us “, I am certain is far from the truth, !!!!.

  • Sir Harry 1875 says:

    The Italians are our best hope by a mile. Any HK interest will be, at best faceless and at worst Carson in disguise. A consortium with a midland based head who want to see us in the Premiership quickly or another HK based consortium who could’nt even tell you the colour of our shirts? I know which I prefer. Paladini is a typical Italian, he is passionate and emotional, wheres his heart on his sleeve. At least we know what we are going to get.

    Can anybody seriously want our Club to stay in the hands of any group from HK or China? Surely not.

  • DoctorD says:

    What this is saying to me is that Pannu has come in and is clearing out the mess in what looks like a fairly professional manner. I also think this will drag on for quite some time.

    It is also telling me that Paladini is a jmedia-hungry joker who is not the sort of owner we want.

    • Oldbluenose says:

      Doctor D;, Crikey, !!. For the 2nd time within Min’s, I find myself totally agreeing with all that yourself and Louise, have said, — Will there be a 3rd, ??.

      • chris says:

        Trouble is waiting for a better offer may never come and in the mean time we lose Butland, Redmond etc.
        You slate Paladini for not naming his partners, but miss the point that neither did Carson when he bought the club and neither have theses alledged other two parties.
        None of these unnamed parties has even done due diligence so they are no further ahead of Paladini.

        • chris says:

          “Paladini is a media-hungry joker”
          At least he talks to the media unlike Pannu who just releases statements that are a play on words and tell you nothing.
          How would you feel if you were a BIHL shareholder losing money, can’t sell your shares, Director leaves over alledged secret payments and can’t even see the accounts for the last two years of the people losing your money.
          I would be fuming and wouldn’t trust a word they say and you’d rather trust them than someone based in the UK?
          He has no rapport with the fans and he’s statement today about how important the fans are is contary to how he treats us via the media or club statements.

          • DoctorD says:

            Yeah fair points. But Pannu has only been CEO of BIHL for a few months and, to me, it seems like he’s trying to sort the mess out. His announcement to the HK stock exchange has by its very nature got to be a fairly dry affair. The court case hanging over the main owner also means he has to be ultra cautious in what he says. I am sure when it is over and we have new owners that Pannu will speak out much more openly.

            What concerns me about Paladini is that he can’t keep his mouth shut when he’s trying to buy the club and discretion is advised. What would he be like if he really took over? I think he would turn is into a laughing stock.

  • Paulo says:

    May I just point out that none of us know who exactly is in the consortium fronted by Paladini. So how on God’s earth do any of us know if they would be our saviour? It’s a bit like being on a sinking ship with nothing but two leaky life boats to choose from.

  • Manicmac says:

    It’s a shame Pannu hasn’t got loads of dough. He’s the only one of the lot of them with a clue!!

    If he owned the Blues I think we’d be ok. I only hope that IF we end up being owned by another HK based outfit, they’ve got some money and Pannu stays at the helm.

  • pete says:

    I would be very surprised if the HK party aren’t people already involved in some way in the club.

  • tamuffblue says:

    Just tell me how this circus gave us the best day of our lives ???? they had fook all to do with it – we all know we had incredibly generous draws – we hammered a spiritless Vile side and fans !!!!! and played out of our skins on the big day – for a change !!!!! So please think of them has naive or stupid whatever BUT do not patronise them with tainting that glorious february day

  • chris says:

    Atahualpa is on the money i believe.
    “BCFC to the next level both in terms of their financial standing, business acumens and overall suitability and the nature of their offer and the overall terms of the offer”.
    to me this says they want a Chinese or Hong Kong investor who will buy the club, but let them retain a large shareholding, hoping they can get promoted and re-coup a larger part of their investment over the coming years.
    This is probably why they don’t want Paladini because his £15 million in add-on’s isn’t enough for them.

  • arthur says:

    I must beg to differ with my fellow comrades. Personally I’m only prepared to sell my shares to a Western buyer. I’m sorry but we’ve had quite enough of people trying to run our club without understanding our British culture – first we had the Kumar’s (Mark One fame) then we have our latest guests (very dubious). At least Sullivan and Gold had a good honest business track record in the adult entertainment industry. The only exception I would make is if a multi-billionaire flew in from Kuwait and offered to redevelop St Andrews along the lines of the Emirates, with a team equivalent to Man City.

    • manicmac says:

      What!!!!!!
      Sullivan and gold made a fortune out of blues and put it into West Ham !!!!
      They sold the club for twice what it was worth and paid themselves all sorts of costs (ms Brady etc) which they subsequently had to repay, Football is full of gready people> the only people who can be trusted at ANY football club are the suporters

    • Jay Sidney says:

      So it ain’t about “culture” after all, Arthur. You let it slip at the end of your selective and semi-racist rant that you would be only too happy to fawn before financial muscle, as long as that financial muscle was big enough and irrespective of where it came from.

      Perhaps you prefer the “culture” of odious, brain-dead rags like the “Daily Sport” and other tacky nonsense. If you think Sullivan and the Gold brothers were so good, remember these men were multi-millionaires but never really pushed the boat out when it came to serious investment in BCFC. However, they were only to happy to make a massive profit from selling your club to the current useless owners whilst insisting Yeung and his questionable associates were the people for Blues.

  • Cypriotblue says:

    Dont think people should be put off by Far Eastern buyers Carson was unlucky, if he has laundered money or not. Unlucky if he hasnt, and we get hurt, unlucky if he has…..he got caught!

    There is no doubt there is some major wealth in Hong Kong, we should be glad, and I am in particular glad if paladini led mystery buyers do not buy us.

    • Blue in Spain says:

      I agree with you about Paladini, I am sick and tired of him playing this out in the media, and people like Tatts and Mel Eves at the Mercury have become a mouthpiece for this media whore. Where are you in Cyprus? I served in Episkopi from 1997 to 2000, had a fantastic time!

  • Cypriotblue says:

    Limassol, i call it a city by the sea as it is not too touristy, but i am 5 minute walk from the sea. Carnival is a great time here, looking forward to next years. Where in Spain are you?

  • Art Watson says:

    I’m on the other side of Cyprus in Esentepe.

    It’s good to hear from expat bluenoses.

  • KeepRightcroydOn says:

    Paladini played stupid game, being presumptuous and going public, not just on the intended purpose, but also about his plans should he be successful. I don’t think he has done himself any favours in endearing himself with CY & PP. He’s used the media to try and force the issue and this appears to have had the effect of antagonising PP. A bit of tact would not have gone amiss. PP is a bruiser and is more than happy to go head to head if goaded. I think Paladini gambled in the hope he could force the issue before the CY trial. A bit of a misjudgement, because PP was never likely to blink first.

    Now we need to wait and see if PP is bluffing about other investors to get Paladini to raise his bid, or if indeed there are serious bidders in the background. Next week will be interesting.

  • Cypriotblue says:

    KRO, they have made an official statement to the HK stock exchange. After all the problems with breaking the rules in the past, I would be amazed if the HK consortium is not real, so it isnt a bluff


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