Often Partisan

BIHL Announcement – Due Dilligence Completed by Parties

Birmingham International Holdings today made a further announcement to the stock exchange with respect to the relisting of shares in the company.

The announcement is a big one. Carson has confirmed that he will suspend his management duties on or before the resumption of trading until his criminal case has come to a favourable close or his resignation, whichever comes first.

They have also confirmed that due diligence has been completed by parties with respect to buying Birmingham City FC but no formal offers have been received.

The board have confirmed that KTC Partners internal review has been received by the board and that they are undertaking remedial measures to sort out problems. The company is also looking into the operations of its audit committee, and has confirmed that the appointments of Carson Wong Ka Chun as Independent Non-Executive Director and Jerry Ko as compliance officer have been made to ensure the company meets regulatory rules.

It’s also been confirmed that in addition to the recent loan of HK20million made to the company on August 1 that they are pursuing an additional loan of HK30million (about £2.5million) and to seek a further loan at “the subsidiary level”. It also mentions that they are “negotiating with certain creditors in relation to obtaining haircuts to the relevant outstanding loan amounts.” I am sure no pun was intended.

In real terms there are two bits of news to take away from this. Firstly, that parties (plural) have undertaken due diligence to buy the club – which is a big step and the first time this has been confirmed publicly. Secondly, the announcement was signed by Carson, not Peter Pannu which would appear to confirm my theory that he’s not in Hong Kong. Thirdly that Carson might just be relaxing his iron grip on the holding company.

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95 Responses to “BIHL Announcement – Due Dilligence Completed by Parties”

  • Blueboy83 says:

    Could the end finally be in sight? Here’s hoping!

  • Slanegirl says:

    I thought you said that a takeover was not in the offing?

  • Tom says:

    What exactly is meant by the loan taken at subsidiary level comment?

    • almajir says:

      I don’t know, it’s ambiguous.

      It could be that they’re going to take a loan to inject cash into a subsidiary, say BCFC. Which would make sense
      It could also be that they’re going to take a loan against BCFC or it’s assets – which would also make sense.

      I think it’s the former, but don’t take that as gospel.

  • Graham Woodward says:

    So Pannu was telling porkies then?

    • almajir says:

      Was he?

      The statement – The club has been inundated with messages from supporters reacting to a series of disruptive rumours and speculation. There has been no sale agreed nor is any change of ownership imminent at this moment in time.

      According to today’s announcement, no formal offer has been made (and thus one can infer no sale is imminent).

      Seems consistent to me.

  • Dan says:

    Well, some movement at last…

  • Agent McLeish says:

    Thanks for the update. Another scoop for OP!

  • Oldbluenose says:

    Amajir;, Is this ” potential ” loan that Bih, are contemplating, — A way of C,Y.’s obtaining some of his monies back, by adding to the debt at B,C,F,C. ??.

  • olly1875 says:

    Could Tom Ross be due an apology????

  • DoctorD says:

    This is fascinating as you say Al but it’s a bit of a mouthful.

    “Mr. Yeung informed the Board that he will voluntarily suspend his management duties within the
    Group on or before the resumption of trading of the Company’s shares (the “Resumption”) and at
    least until Mr. Yeung’s criminal case has come to a favourable close or upon Mr. Yeung resignation,
    whichever is earlier.”

    Can you unpick this Al in terms of different scenarios — can’t get my head round it. I know you did above but it’s seems there are more permutations than you made out.

    • almajir says:

      I thought I had, but yeah, sure.

      Carson’s saying he’ll step down – eventually. Either now, or when the shares are relisted, and he’ll stay stepped down until he’s acquitted or he quits (whichever first comes first). i’m assuming he has to quit if he’s convicted but he didn’t want to say that.

      • glyn rees says:

        So are major step towards re listing, which is still in my belief when thing will really move Kro4ever

        • chris says:

          if they are re-listed we the fans or the Blues Trust should be buying at least one each and using our voice through the shareholders agm’s etc, that’;s if no one tries a hostile takeover (dreaming).

  • dave mann says:

    fingers crossed onthis one, thats all i can say.KRO.

  • Lee says:

    Parties have undertaken due diligence to buy the club, now I’m feeling happy, my money is sitting waiting to be spent on a season ticket, hopefully not for much longer

  • MrBlueSky93 says:

    Just out of interest Almajir, what’s your take on what Nursey said a few weeks back with regards to his takeover talk–on Twitter

  • Marky mark says:

    Get those apologies ready for Mr Ross,

    As always with Pannu and Carson you have to read between the lines, and whilst no formal deal has been agreed a deal in prinicple most certainly has.

    • almajir says:

      Marky Mark

      He said it was imminent. Imminent is not eight weeks and counting.

      No apology here.

      • Marky mark says:


        Not wishing to be pedantic, but the dictionary definition of imminent is
        Likely to happen soon

        And in the business world of takeovers 8 weeks is no time at all,


        • almajir says:

          Marky Mark

          Not wishing to be pedantic, but to be accurate Tom said that there would be an announcement of the deal being agreed made imminently.

          We’ve had at least two since. Neither have said the deal was agreed.

          If you’re going to be a pedant Marky, get your facts right.


          • Marky mark says:


            Perhaps Tom was guilty of some extemporaneousness with regards to his comments

            Hope he doesn’t suffer from katagelophobia

          • Alex T says:

            “lol”…. Genuinely made me laugh out loud!

            superb use of the “..” ;)

          • steve says:

            I don’t ever remember Tom saying an announcement being made imminently.There seems to be a lot of back tracking here.Egg on face time soon i reckon.

        • Wearynose says:

          The OED definition of ‘imminently’ is: “about to happen”. Whatever Ross’ exact words he implied a while ago that agreement had been reached when it clearly hadn’t, as shown by the statement to the HKSE which Al has revealed today. The optimists who have said on here that an agreement might have been reached before due diligence are without logic and are unaware of the normal business process. You can’t reach an agreement to purchase a business before having assessed the accounts and the background trading records.

  • StevieW says:

    Gearing up for trading and stoking the rumour mill boiler room. What a statement that is, I like the bit where it states “Parties”. I hope this gets us quality owners through the competition.

  • George says:

    Good work Dan on your two articles today.

    The Stock Exchange announcement says Jerry Ko is there (amongst other things) to handle the requirements of the Take Over code. So it’s started and the loans are there to keep the business solvent while a sale goes through. It would be interesting to find out where the loans are coming from and what security was offered.

    The due diligence parties may not be multiple buyers. Could just be one party and BIH. I believe the ownership may well stay in China. So will everyone be happy? Vico Hui may have said he is not involved in buying the Blues, but he can’t say much else as its confidential. Also it explains why he has not sued for his £400k

  • George says:

    Hope you are right Dad. It should belong to Blues fans and supporters in the UK, who talk to us. But I think a Chinese buyer is highly likely.

  • George says:

    I meant Dan not Dad!

  • Andy says:

    I suppose it depends on exactly what has been done when they say ‘due diligence’ but sounds like at least some progress. The trouble is there are lots of areas that can be classed as due diligence. Sometimes just looking at the financial side of a business is enough (which is what people most commonly associated with due diligence) but sometimes this will also cover looking at the marketing opportunities of a business, current state of management/ staff, non-financial assets (such as a brand). If they say this has been completed then there is a good chance some sort of discussions have taken place about a purchase of the club. Due diligence is a voluntary process that the board would have to agree to – so it’s not like “any old joe” can just turn up and complete a due diligence process on any company they want. Fingers crossed that we might get some more info in the next few days/weeks!!

  • TonyE says:

    Is it significant that our mate Pannu is not on the scene when this very important announcement is made, don’t see how with his power base he could be sidelined, so I wonder if he’s off talking to potential buyers , or I suppose he could just be on holiday.

  • Frankie says:

    All we can do is hope.
    No-one is going to waste their time going through the ‘books’ though if there is no intention to buy.
    This lot have bled us dry, so we have to be optimistic that ANY new owners would be better.

  • TonyE says:

    A question, do they have to pay a fee to be able to carry out due dilligence i.e. see the books? If so, that would suggest serious interest, as surely you wouldn’t pay a fee if it were just a casual enquiry?

  • Agent McLeish says:

    so “no formal offers have been received”. Suggests that the ‘offer’ fronted by Paladini was informal? Also infers that the agreed deal that Tom Ross referred to was also informal? One thing that is certain is more uncertainty.

  • RUPERT says:

    Al Have you an inkling as to who the bidders are ? People are saying the Napoli owners with Palladini negotiating, I also, heard carrot and Francis! But Is it more likely to be Indian ?

  • Matt says:


    Forgive me for maybe being a little behind the pace with this one, but I thought that Carson was restricted from travelling? Has this been lifted? Just wondering because of your theory that he may not be in HK – just wondering if he’s planning on popping over to see the team one last time?!


  • Joe Fellows-Cox says:

    What exactly does this article state ? KRO

  • Vern says:

    If people have been given access to the companies financials to undertake due diligence this would indicate that a price has been broadly agreed. No company would open the books without an indicative offer.

    However as Dan rightly points out this is no indication anything will happen soon, in business everything takes time and negotiations could very well drag on. The likelihood of this is heightened by the fact the group are seeking further finance, which they would not be doing should a takeover be ‘imminent’.

    All in all a step in the right direction but as is pointed out in the article, don’t get too excited!

  • Euston 9.18 says:

    Almajir do you know who the interested party’s are as you are quite sure they are not Chinese which you replied earlier.

  • Geoff Smith says:

    An interesting piece from Almajir and the cautious comments show nobody is getting carried away – and rightly so. There maybe a little encouragement here but it’s a wait-and-see situation.

    I’ll put my offer of helping with an e-petition on hold for now. Art Watson has not replied to date and WalmleySteve wasn’t that taken with the idea. Let’s see how this BIHL due diligence situation pans out.

  • peter bates says:

    just been on official club site and nothing on there regarding due diligence or relisting or takeover didnt peter pannu say fans would only hear via this site have the hkse confirmed announcement from bih

  • Marky mark says:

    So Tom Ross was right all along, just goes to show who really had the close connections at the club.
    He announced a deal had been agreed and a statement would be released imminently, for whatever reason there was a issue which has caused a few weeks delay. It would appear some people are jealous of Tom and wish to slur his good name.

    For all we know a deal could well have been agreed in principle weeks ago subject to the accounts being checked. Tom should not be chastised but applauded for having the balls to share his knowledge

  • tom says:

    sounds a step in the right direction,i would think it means the club aims to have some change by the time carson undertakes the rest of his trial, otherwise what would be the purpose of it; they would just remove from him position if hes sent down as and when that happens.

    would be interested to see what the attendences would be if a new owner came in and we still performed mid/low table by christmas. claiming to stay away because of the owners, lets see if they come back when the footballs not the best eh.

  • Tony says:

    Dan may I ask were you aware that things had reached this stage, people doing due dilligence
    If so when did it first come to your attention?.

  • Tony says:

    I didnt expect a reply to that

  • AndyP says:

    Great news and at least we know the cogs are turning,even if slowly.
    Bit of news on pannu,think he’s now a major film star and plays Grew in Dispicable Me,looks a dead ringer and title also fits

  • Bcfc1955 says:

    I think we should be asking Tom Ross who the bidder is
    I always believed he was closest to the truth than any of the other pundits
    My money is definitely with the group fronted by Palladini whoever they may be

  • The Francis Fake says:

    For the first time in ages I am encouraged. Due diligence is an expensive process to undertake and could involve both accountants and solicitors and normally only takes place after an sale price has been agreed. For 2 parties to have carried out due diligence prior to the acceptance of an official bid suggests to me that both of the prospective buyers are pretty certain that if they are happy with the outcome of due diligence that can secure the purchase of the club for an acceptable price otherwise they wouldn’t have committed to the cost involved in the process. Therefore, a realistic and relatively low price for the club compared to those figures previously quoted seems likely. I think CY’s resignation statement is very much linked to this. As CY is creditor as he has a directors loan it ironically seems that he may be willing for to have a “haircut” on his own loan in order to secure a sale.

  • Tony says:

    Its not personal sniping Peter old bean its a simple question, If Dan knew of it weeks ago he did not shed any light on it.
    Furthermore if due diligence had been completed recently that gives us more hope than if it was done several months ago and no offers have been forthcoming as Gerald would say MMMMM

  • StaffsBlue says:

    I don’t see the point in all this did he, didn’t he… who was right, who was wrong bullshit. Who cares? All that matters, is that at last, it appears something might be happening. Let’s just wait and see now eh? After all… we’re all supposed to be on the same side. Yes?

  • Tony says:

    There are some of us who take exception to the lack of respect shown to Tom Ross.In future we would like him referred to as Tom or Mr Ross if you please.

  • Tony says:

    Fingers crossed Staffs

  • Jonno says:

    I think this proves Tom Ross knew something all along that others didn’t.

    Anyway, it’s great news if its the first step in the takeover, there’s some hope for us at last

  • Mickey07 says:

    I think Tom said tonight on the sportsbar the people he knew interested are out of the frame now…I’m sure that’s how I heard it.

  • Paulusss says:

    You all need to stop sniping at each other as it really is simple what’s happening. A party has agreed in principle a price for the company. At this point both parties agree to open and investigate the books. (Due diligence). This costs money and the interested party would not pay money unless the interest was serious. On completion of Due diligence the purchase price would then be renegotiated. If agreeable the purchaser would then go about securing funds for the purchase. This could take time and cost money. When this is sorted in goes the offer and an announcement is made. So stop sniping and await the inevitable. Simple really.

  • Tim says:

    Please let this be the beginning of the end of Hong Kong phooey and his mates and the start of our rise back to greatness

  • Liamdoggio says:

    Whatever this all means nothing will be done before the end of this transfer window.Worrying thing is that what we have seen so far this season scares me to death; I am watching the team we love bleeding out in front of my eyes.I have been a season ticket holder for 35 years and I have always said “the only way I’ll stop going to support this team is if they go out of business” that is a possibility (you’d hope someone would buy them) one thing that looks very likely already this season is that the current team are by far not good enough to stay in this division. You get what you pay for ………….we’ve paid nothing for this year’s team and that’s exactly what the return is going to be ! Sad sad time for our beloved Blues.

  • Tmsblues says:

    Since due diligence has been undertaken by two parties who having done so have not made any formal offer. This probably points to the fact that what those parties found did not impress them. The announcement also failed to state the timing of these due diligence inspections. This could have been last year !

  • KeepRightcroydOn says:

    Tom Ross kept saying that a sale is imminent. He was very vague and offered noting to substantiate his claim. I think we all expect the club will be sold at some time in the future, we just don’t know when. All we know is that it will take a while. I or any of us who comment on this site can make an unsubstantiated claim like Tom has, and eventually when it happens we can say “I told you so.”

    What is a fact is that stock exchange rules are very clear in that the holding company has to make an announcement to shareholders through the exchange if it enters into any discussions with interested parties on a sale. This hat not happened when Tom made his announcement , so he was obviously talking poppycock.

    After this announcement, Tom comes up with the “I told you so” line, I for one will take it with a handful of salt.if he does not back it up with supporting evidence for his original assertion.

  • steve says:

    Firstly due dilegence is a normal part of buisness life and happens very often in the private sector

    Secondly due dilegence does not many anything other than having a look

    Third this is a championship club and buisnessmen will be interested

    Last point vultures will circulate for a fast buck look at pompey 3 or 4 owners in quick time

    All had no money just got hold of quick cash and bonds to try and free wheel a quick cash cow

    Remember we have to be carefull what we wish for plenty of people will try and buy low strip and sell

    And you can strip more from the club believe me

  • Aussiebrum says:

    This is the second announcement Peter Pannu hasn’t signed – he’s possibly been marganilised, or is not in the country or both.

    • StaffsBlue says:

      If.. and it’s a big IF, Paladini was involved, would he be able to declare ‘no confidence’ in Peter Pannu and, therefore, stipulate that he has no part in negotiations? Just a thought.

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