Blues owner confirms acquisition talks at advanced stage
THE owner of Birmingham City has confirmed it is in advanced talks with a Hong Kong-based business over the sale of the football club.
Birmingham International Holdings said three parties – two in Hong Kong and one in the UK – had expressed an interest in purchasing the Championship club but refused to identify those concerned due to commercial confidentiality.
In a statement to the Hong Kong Stock Exchange BIH said: “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.”
BIH urged shareholders not to react to what it termed “speculative media reports” and to rely on announcements issued by the holding company.
The BIH board said it was trying to identify a new owner who would take the club to “the next level” by demonstrating a secure financial standing, sound business acumen and an overall suitability.
“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,” added the BIH statement.
The holding company said it was also in active discussion with its creditors to agree a restructuring deal which would ease the debt burden on the business and ease cashflow while the sale process proceeded.
However, it said nothing concrete had been agreed and as such trading in the firm’s shares on the Hong Kong Exchange would remain suspended until further notice.
The suspension, which has been in place since June 2011, means the holding company will also not be releasing the club’s financial reports.
Meanwhile, a war of words has broken out in the local press between Blues acting chairman Peter Pannu and Gianni Paladini, the Solihull businessman who has been linked with a takeover bid for the club.
Paladini, the former chairman of Queens Park Rangers, reacted angrily when Pannu insinuated his Italian consortium does not have sufficient funds to buy the club.
