Often Partisan

Relisting Announcement Analysis

Birmingham International Holdings published an announcement yesterday with respect to the relisting of shares in the company, which have now been suspended for just over two years.

There’s been some excitement about this announcement as some fans seem to believe that it will pave the way for news with respect to a takeover – particularly as there is direct reference in the announcement to details being published with respect to the sale of the football club.

Birmingham International Holdings have received a letter before from the stock exchange with respect to the resumption of trading in their shares. This was received on December 20 2011, with the attendant announcement being published a week later. That letter stated that BIH needed to satisfy the stock exchange of all information relating to the arrest of Carson Yeung, to demonstrate that the company was running correctly despite Carson’s arrest, to publish the then-overdue accounts along with addressing any financial concerns and to demonstrate that they are following the rules correctly.

Not much has changed in the eighteen months before this new letter from the stock exchange. Accounts are now up to date and with Carson’s case having been at least part-heard in court two of the four conditions have been at least partially met. However, the letter asks for information about liquidity, about working capital and to demonstrate that the company is running properly along with their intentions for the club.

There is one thing to note straight off from this letter – there is no date given for when these conditions must be met so we must assume that it’s open-ended and that the status quo will remain until BIH do something. I have written to the HKSE asking for their comments with respect to a deadline and/or sanctions but as yet have not received a reply – once I do, I will update the blog. Likewise, I have written to Mr Pannu for his comments and await his reply.

I think the chief thing to take from this announcement is that it appears the stock exchange shares the same concerns about the ongoing financial abilities of BIH; both of their sets of accounts were published “without prejudice” and there appears to be a real issue that the company can continue as a going concern. Furthermore, whilst BIH announced to the Stock Exchange back in February that a company called KTC Partners CPA would be conducting an independent control review with recommendations to be made around April nothing has been further forthcoming with relation to that and I believe that the Stock Exchange is trying to ensure that the company is operating in a proper manner.

I think that any optimism that an announcement with respect to the sale of the club is forthcoming is misplaced; based on the information I have I cannot see any imminent sale of the club at all and I doubt that we will hear anything with respect to a bid being accepted much less a sale being completed before the end of August. However, BIH may be forced to confirm the status of negotiations to the stock exchange which would at least put into the public domain how far things have advanced – not just with any potential party here but if there has been any movement in China/HK also.

Basically, what it boils down to is that there is no real change. As fans we’re still in a holding pattern, waiting for the next announcement to come from Hong Kong to know where the club stands. As there is no deadline that I can see we don’t even know how long we are going to have to wait. However, there is some hope that the stock exchange are also losing patience with the company and that maybe, just maybe BIH will be prodded into action.

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73 Responses to “Relisting Announcement Analysis”

  • Lee says:

    All the hkse have done is send bihl a letter asking what is going on, it’s nothing more than that

    • Daddyblue says:

      Sorry Lee but I disagree with that, the screw is tightening turn by turn. They are upsetting a lot of people in China and HKSE have asked a lot of awkward questions and their patience is wearing thin . It wont be quick but bit by bit their time cometh KRO4EVER

  • Richard Barron says:

    We can only hope that the HKSE uncover the deception that is clearly taking place with regard to BIHL and the club.

    Yeung and co were only interested in us as a PL club because of the money it brings. That is why they promptly disappeared after our relegation in 2007/08 and returned to buy the club once we were promoted.

    If anything they are guilty of is misleading the supporters into believing that they could take us forward. We had a well run club which had been built up over nearly two decades – all undone within 18 months of BIHL being in charge.

    They have saddled us with debts to Carson Yeung that we didn’t need. Along with agreeing to the ridiculous contract for Nikola Zigic who has bled the club dry, along with Peter Pannu who has made more money in a few years than he could make in a lifetime.

    Why would they give this up? This is why I agree with you (author of OP and this story). They are on to a good thing at BCFC and without it they would have nothing earning them money like BCFC has.

    I am very disappointed that we have lost so many of our academy prospects to keep money rolling over to HK and into Nikola Zigic’s back pocket whilst they give little or nothing back.. Pannu, nor any other director, bother to visit St Andrews or support the team. They just keep taking the money and Nikola Zigic is a footballing mercenary who has continued to flatter to deceive.

    We are probably paying for Yeung’s hospital bills as well whilst this embarrassment of a court case is held up for months whilst he recovers.

    I don’t see any light at the end of the tunnel, but I am prepared to back the players (even Zigic), and Lee Clark, on the pitch as we desperately need to hold onto our Championship status next season.

    • Daddyblue says:

      Well said Richard

    • tmsblues says:

      Absolutely spot on review Richard. For those who think the HKSE letter means the beginning of some end game then I have to ask what they think the Exchange will do? BIH are not listed right now ie suspended and so I can’t see what sanction can be made against the Company nor perhaps more importantly when?

      • RichardM says:

        “Saving Face” and the honour of your name are especially important in Chinese business circles. Both Yeung and Pannu have to think of their future reputations, long after they have relinquished the reigns at St Andrews. That’s why it’s hugely significant that the HKSE have lost patience with BIHL – true, there is nothing they can do to force the sale, but the fact they’re now asking the same questions as the Blues fans will make both Pannu and Yeung squirm and sleep a little less easy – all of which (I think) is a positive step towards the sale of Blues.

    • Wearynose says:

      Championship status is not important except in that it would be more likely to bring about a sale. I don’t care if we are in the Conference when we are rid of BIHL because we can then start to rebuild as Wimbledon fans did from scratch, playing on parks pitches. The only important thing is to be rid of the HK owners. The lower the league status the poorer the revenue and the more likely a sale becomes. If you keep shovelling your hard earned into the club the longer the Chinese will hang on.

  • Mickey07 says:

    “However, there is some hope that the stock exchange are also losing patience with the company and that maybe, just maybe BIH will be prodded into action”

    Don’t hold your breath,bih are just one massive basket case and pannu no doubt will be coming out with every form of bullshit to the hkse in the next few weeks to keep his money rolling in,the bloke is a law to himself,don’t fall for any of this nonsense,as he will do anything to make sure the money keeps rolling into the Asia rays bank account……..why cut off the supply,whats in it for him??

    • Daddyblue says:

      The well is running dry Mick, if not run dry

      • chris says:

        no where near run dry, my estimates = £8 mill in parachute payments, £6 mill in ticket sales, £2 mill sponsorship deals, between 1 or 2 mill in corporate meals / events and merchandise, players sold so far £4 mill, kit deal £500k, tv money £3 mill = 25.5 mill.
        Wage bill 2011-12 = £25 mill approx this season?? £18 at a guess and less if they can move on King, Ambrose and Mullins.

  • Lee says:

    As blues are 95% of bihl turnover they are all knackered when the club is sold, having said that the pot is almost bled dry so it’s possibly time to find another source of income, I can’t say how much I’m looking forward to the day yeung goes down and I hope he gets his arse end torn apart in there

  • ChrisG says:

    Come on Dan when are you going to be honest with us?, that money you collected in donations toward the so called “running of the OP website”, you’ve used all of it on buying the Blues & you’re making all your regular posters directors!!lol……..well we can dream

  • Oldbluenose says:

    Almajir;, As with your thoughts, I also, will NOT be holding my breath in anticipation, !!.

    It is hard to swallow, That the owners being H,K. based, !!. Are millions of miles away from Blues, We have no acceptable contacts/direction, It is a discusting way of conducting buisiness indeed, !!.

    I also feel very sorry for Julia Shelton, and all the backroom staff, who obviously have to ” paste-on ” a smile whilst working their socks-off to keep us afloat, !!. — Without any help from P,P. !!!!!!!!!!!.

  • peter bates says:

    i hate to say this but perhaps administration might be the best thing then cy pp and all the other unknown faces get nothing we are being bled dry we all know that as for zigic if someone offered you double your wages would you turn it down i think not

    • almajir says:

      People keep saying this, but how is administration going to happen? Administration occurs when people who the club owe money to force it… and who does the club owe money to? Just Carson and BIHL, neither of whom want to put the club into admin.

      And before anyone says it, boycotting matches wouldn’t speed it up much either – most money these days comes from tv deals, parachute payments and commercial income rather than us fans…

      • Blueboy88 says:

        Sadly I think BIHL will cling on to BCFC until the Bitter End.
        Limping on while exhausting all the financial avenues open to them.

        The tourniquet is tightening , parachute payments are coming to an end, player sales are coming to an end, & the HKSE are seemingly stepping up to the plate.

        While I agree admin is not on the agenda today, it may well be a very different picture in 6 months time..

      • Alex T says:

        True, but BCFC get a lot of extra income from individual televised matches because we are ‘big’ club with a large ground (for the Championship). Fans staying away will help the club go into admin for 2 reasons;

        TV companies wont be so keen to televise us if our ground is two thirds empty.
        Admin will be forced if we cannot pay players wages or tax bills.

        I think it is ridiculous that people are still paying money to these jokers in the mis-held belief that they are supporting their club. We may not like the medicine, but the patient requires it!!

    • chris says:

      Admin is a million miles away, IF, they can get the wage bill down further and well below 50% of the turnover.
      Once this season is over Zigic will go along with i believe King and Mullins, then they may be able to keep all the £8 million parchute payment next season (2014-15) to pay off our debts and leave them with a debt free club, which they could sell for 15 to 20 million.
      They will not re-list the company and leave themselves open to a hostile takeover, which would mean they (BIHL) end up with nothing due to the current debts we have (Yeung and BIHL loans).
      All this crap about the money going back to Yeung pockets etc is garbage unless you can prove it is not being used to repay the loans we had.
      They are entitled to take money out of the club, they are owed the money for goodness sake.

  • dave mann says:

    bang on and well said almajir, all those fans who want to boycott games and not go
    are doing the club no favours what so ever and are welcome to stay away, we will
    never go into administration so get over it.
    new buyers will come in eventually and our fortunes will turn the corner and then
    suddenly like majic the ” fans” start turning up, it does my head in honestly!KRO.

    • Alex T says:

      I am staying away because I am a true Fan of the club!

      Just because I will return when the ‘accused’ money launderer is gone just means I am taking a different view to your own.

      Doesnt make me less of a fan…. Im missing out on doing something I love every other week (and probably going shopping with the missus). Thats my sacrifice, whats yours?

  • peter bates says:

    if that is the case then eventually we wont be able to pay things like hmrc and if that happens they will apply for a winding up order and cy pp or anybody else can stop them from applying for that order and admin may be the only answer if bih have no money as well

  • Tony says:

    I cant understand why the F L cant step in. This club is being reduced to ashes by Pannu and yeung, are there no rules on how much an individual can take in consultancy fees, salary etc. to the detriment of the club when we are clearly going down the tubes.

  • StaffsBlue says:

    Like I’ve said before, smoke and mirrors… it’s all smoke and mirrors. Only believe what you read here: http://www.bcfc.com/index.aspx Ignore everything else.

  • Lee says:

    So, we’re selling players to cover the running costs of the club, we have none left to sell with zigic on around 50-60k a week, basically our wage bill is as good as the same as last season bar Redmond and Davies, so what happens next, I think saying blues will never go into admin is bullshit, same as saying boycotting games won’t do anything is bullshit, we can’t operate without selling player, we don’t generate enough income, you even say yourself hkse are concerned with us as an ongoing business, this all points to the fact that blues are close to either not being able to see out this season or being bought out, until these clowns are gone I will happily go to away games, but I refuse to contribute towards pp 13k a week, if blues don’t find an owner then this season is as far as it goes, we are knee deep in shit, how can we possibly see this season out without moving zigic and king who both combined are on in the region of 80 grand a week, unless there is a new buyer very soonthen i can only see admin as way toget these idiots out

    • almajir says:

      Thing is Lee, people think admin is just around the corner. It’s not.

    • StaffsBlue says:

      But admin makes no sense at all. Why do that and end up with bugger all? Nah, they’ll keep it ticking over, at least until they either a) make their money back (or as much as possible, or b) they sell the club. They’re not going to give it away for nowt by going into admin.

      • Alex T says:

        ye, so if we stay away for long enough, they are forced to go into admin when they cant pay players or taxes…..

        • Pete says:

          Sad fact is people claiming that they will stay away until a new owner comes along are probably believing that- BUT will end up , in many cases not going back or picking and chosing games. Still have to say I have a low opinion of those who can’t get behind the players- the income generated from ticket sales is not all that much – IT is the TV money and parachaute payments which provide any real income, and that is coming anyway. I have no expectations next season EXCEPT the team will hopefully be trying their best after Lee Clark said what a greatly supported club this is- shame the players might have better expectations of us and many will let the players down with lack of support.

          If you do not want to give money take your own food, dont buy a prgramme, etc- but by not supporting the team seems to be no way to help the team. Every last minute goal the team can get from the club can earn extra revenue by league position or might help keep us up or even get in the play offs. How can that not be worth supporting the team?

  • Tony says:

    Yes Dan I know you are correct, but for gods sake what are the for for if they cant stop this happening, this cub has been around for more 125 years and these pair are kllling us seems so unfair.

  • dave mann says:

    lee, pannu will still pick up is13k a week weather you go to home games or not, its other
    staff employees who will suffer redundancy and refusing to go and see the team you
    love because of those two muppets doesnt cut it with me sorry.
    i love away games more than the home games, the crack, the atmosphere blues fans
    generate is second to none, but they need our support more than ever now and not
    deserting them in this current situation and as i said earlier we will not go into
    administration because something will happen for us because it always does.KRO.

  • Lee says:

    If we are not sold and have nothing to sell how do we pay wages/bills, there will be no option, they then break hkse rules and the club is taken from him, I don’t think it’s on the doorstep, but common sense is saying its coming if there isn’t either a sale or a cash injection to cover the costs for at least 12 months/next season, we need these parasites out of our club and right now I will take any option available, as I see it we were always going to end up on the brink before these people leave, if admin is the way to rid us of them then it can only be a good thing because until we have new investment we are going nowhere, fact, how can what’s occurring now be a good thing?

  • Lee says:

    Dave, if there isn’t 13k a week to give him he can’t have it, that day is on its way

  • Cbrccc says:

    People think admin is just around the corner it’s not !
    That’s a strong statement OP so why do give the impression to know so much yet tell us so little.?
    A few months ago you may remember you stated that things would get very sticky for BHL in June when the loans etc were up for renewal or whatever and that hasn’t materialised so how come you have changed that tune.
    I am struggling to know what exactly you are . Journo , Blogger ,Author .?
    Maybe all three but its amazing how much you claim to know without actually telling us how you know or on what you are basing your opinion. how and I have admit to finding just a bit it .annoying.
    Sorry but that’s how I feel .

    • almajir says:


      Right – let’s take this bit by bit.

      Firstly the loans – the announcements were made in August 2011 so they would have been due in August 2013 (which is what I stated, not June). However, information from my trip to HK suggested the loans were never taken up and thus since then I have made that plain in comments on here, which you may not have seen.

      How do I know that admin isn’t around the corner. Well… think about it. Do you not think I talk to people who know what is going on? Do you not think I do my research? I put on here what I can but I have to a) protect my sources and b) be able to ensure what I say can be upheld in a court of law. The latest information that I have is that administration isn’t likely in the near future – ie for at least the next few months. Admin only occurs when forced into it because of hostile creditors and the fact is Blues are paying the bills – this is establishable by public domain credit checks.

      It’s up to you whether you wish to believe me or not. I will tell you what I know and what I think, it’s your decision to believe what you wish to believe.

  • Lee says:

    When you take into account the kind of people who own our club I think it’s a little unfair to slate the guy who runs this page, we get told different stories week on week, to try and report anything that’s going on can only be a nightmare, ask Tom Ross, as far as he’s concerned the club should have been sold by now, this guy actually went to hk report on the trial, now there’s not many people who would do that, it’s frustrating for everybody right now, but we all share a common goal, our only hope is that it’s nearly over, just reading through these links you feel everybody’s exasperation with what’s going on, kin nightmare

    • chris says:

      To be fair to Tom, he doesn’t say the club is sold, but that a sale has been agreed.
      I think they won’t actually do the deal till they have paid off Blues debts and certainly not till the August 2013 parachute payment has been paid to the club.

  • AF says:

    I am convinced the shares will not be relisted as it does leave BIHL open for a hostile bid.

    I am also convinced there will not be sale for a very long time to come unless somebody offered silly money. I believe there is a long term plan to a) reduce salaries to a break even figure b) to invest in the academy and young players so that eventually the club is entirely self sufficient and only then will the BIHL loans begin to be called back. I’m afraid I think we will be in this position of not spending on players for a long time.

    However I’m quite excited about the season ahead and all the new players, I just think we should be making the most of King, Lovenkrands, etc around the first team as a final year but then saying goodbye, thank you for your efforts.

    • chris says:

      Agree AF, except i think the loans are already being ‘called back’ in the sense that i believe there are certain times of the year that loan payments have been made already.

      Almajir will know.

      • almajir says:

        They have been – the payments made to Asia Rays have been against the loans for one.

        • AF says:

          OP – Didn’t you say that the payments to Asia Rays were only in lieu of interest payments?

          I cant say a great deal, like you, but know that money continues to go into the Academy. I think there is a long term aim or ambition and its just so silly that that the owners fail to communicate this, as they do on so many fronts. Ie No communication just leads to rumours.

          • almajir says:

            As far as I know that is the case. However, I am also under the impression (although I need to verify the information I have) that some money has been repaid as well.

            The Academy has had a lot of money pumped into it; again, I can’t verify it for sure but I’ve been told the loan against the ground from October 2011 was to fund improvements to the Academy.

  • Cbrccc says:

    Yet again my post is missing.
    Is it the reminder that you may have got it wrong over your prediction that June would be tough for BHL or my questioning of where you get your info or just a problem with the net.
    II wonder about your motives as with PP t he longer this saga continues the better it is for you and your proposed book .

  • Cbrccc says:

    My Apologies I see my post is now there .
    I am getting impatient in my old age.

  • ChrisG says:

    For all those who think boycotting matches is a good idea, what sort of message does that send out to any potential new owners?, now is the time to get behind the club & show anyone interested in us what great supporters we are & that we are worthy of investment. I think on the pitch this season is gonna be a pretty exciting one. Our song says “keep right on to the end of the road” but some seemed to have stopped at the wrong end of that road without even venturing down it. Stop moaning start singing we’ve been in worse positions than this before & we’re still here.

  • Cbrccc says:

    Ok OP Thanx for your reply and ful explanation which I accept .
    I think as Lee said the frustration of this Saga is getting to us all after 2years and so it’s probably better for me to just wait for a official announcement of either Sale or Admin as its doing my head in and I am getting a bit twitchy.
    I shal now stop reading all forums etc and just wait for the outcome either way as it is certainly better for my health and temper.

    • geraldsquires says:

      One would most certainly agree would one not mmmmmm?
      I dont understand why some are appearing to get themselves into such a state of dureza and sheer panic. What will be will be will it not mmmmm?

  • dave mann says:

    when the time comes that blues cant pay pannus wages or zigics wages then
    its time to sell the club not go into administration because they will have to sell
    it at a major loss and try and get some money back.
    administration makes no sense what so ever period.KRO.

  • TracyKRO says:

    Hello all, I think its about time we all support Clark and players now till there is CHANGE, First game for me is at Hull next Saturday I must admit im a little surprise there not many going to the game with them prices looking forward to it, KRO people.

  • dave mann says:

    some fans just dont do friendlys whatever the ticket price and thats fair enough, buit if we
    cant get 18,000 + for watford( sorry udinesee) and over 10,000 for the plymouth cup game
    with those ticket prices, then its a sad state of affairs.
    going to a blues game use to be an event of major proportions, it still is for me, but
    unfortunetley not for a lot of EX blues fans.KRO.

  • KeepRightcroydOn says:

    Fully concur with Dan that admin is not going to happen in the foreseeable future because the club does not have any hostile creditors. It pays its tax, staff salaries and it does not have any outstanding instalments on transfer fees. It keeps on top, just about, by selling its best assets. How long can carry on doing this is this big question, but if it can keep going as a concern until this end of coming season, when all the high earners are off the payroll, it’s likely that any threat of admin will be minimal.

    But for those calling for admin as a means of getting rid of the owners, do they realise what the implications are? Ten point deduction, probably leading to relegation and the reduced revenue that comes with this. Selling of players at even lower fees than PP is getting for them with little or no regard of the the manager’s opinion of who to retain or sell. Administrators are ruthless in cutting overheads as quickly as possible. The quicker they can clear all debts, the quicker they’ll find a someone who’d take over the reins at low cost. And to do this they’ll sell off assets that are a drain on resources, namely players drawing a salary. They’ll have the same problem as PP in trying to dispose of people like Zigic and King, so the likes of Burke, Riley and Hancox will be flogged off for whatever they can get for them.

    I think we just have to be patient and sit this one out, probably until the end of 2013/14 season when serious bids will come in for the club once the high earners are off the payroll.

  • Tony says:

    Having read all the posts could someone tell me exactly what do the FL do apart from look after themselves Portsmouth , Coventry.Blackpool, now ourselves we have all suffered and they do nowt.
    talk about a useless quango thats what they appear to be.

  • Evesham blue says:

    Ok forgetting the off field farce and player sales – looking at the playing personnel only…..Has Clark put a competitive squad together?

    The answer is yes methinks? So quit the whining you should be looking forward with optimism?

    • StaffsBlue says:

      I think that, whatever team we play this season, we’re going to have a strong bench, with lots of options. When did we last have that? Our subs bench on Saturday alone included Burke, Arthur and Shinnie. I think we could be the surprise package this season.

      • Evesham blue says:

        The board still have to get these freebies and loan players signed on. Finances and wages still have to be juggled. There surely has to be a budget and cash flow projections to work to? Despite the distractions LC has still fashioned a good mix of experience, quality and potential. It’s not exactly a wafer thin squad either.

        I think people still think we should be able to splash the cash and not sell any players. We are a championship club and have to cut our cloth accordingly.

        It’s a blimmin marvel that we are still operating as a going concern with the restrictions imposed on us and the post relegation fallout we have had to endure so long.

        So lets have a good crack at it eh? Why shouldn’t we give a good account of ourselves?

      • BhamCityJulian says:

        They weren’t on the bench because better players than them were on the pitch!

  • Russticblue says:

    Dan, what’s your thoughts on the fans protest at Coventry city?
    Even though not much may come of it,it showed a proud fanbase united as one.
    They are playing their home games some thirty miles away, do you think our lot could ever possibly sell the ground?
    Keep right on and all that.

    • almajir says:

      Honest opinion?

      I admire their passion for their club and it’s certainly got people talking but I do feel a sense of “now what?” I think that they are protesting against the wrong people – I think that they (and us) should be putting pressure on the league to enforce their own rules. Until the authorities in this country start actually doing something to protect football things like this will keep happening.

  • Smudge says:

    Normally OP I agree with you comments but fans protesting against the PL FL and FA will do nothing as I do believe that all of the footballing organizations would secretly like to reduce the number of clubs operating at the moment (something that FIFA has also commented on in the past). Also Birmingham has never been the flavor of the month with any of the footballing authorities so I would not see them lifting a finger to enforce their own rules. I don’t know what the answer is but to have games played with a half empty stadium would be a sad spectacle but I do understand fans feelings when they say they wont renew season tickets or pick and choose which games to go to.

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