Blues Saga: Receivers shortlist potential offer for parent company
THE potential sale of Birmingham City FC has moved a stage nearer after receivers acting for the club’s parent – Birmingham International Holdings – said they had agreed to shortlist a potential offer for the business.
The offer has been submitted by one of the seven parties which had last month expressed an interest in acquiring the business.
The bidder has been named as Trillion Trophy Asia Ltd and nothing is really known of the business except that it is not connected with BIH.
Trillion is backed by a £12.8m (HK$153,000,000) facility and in an attempt to progress the bid has pledged cash collateral of £880,000 (HK$10.3m) to ensure Birmingham City FC Plc can obtain a banking facility in the UK.
In a statement to the Hong Kong Stock Exchange, receivers Ernst & Young said they had reviewed BIH’s financial and liquidity position, and its obligation to meet funding requirement of the Football League.
“Should the facility and the cash collateral be made available by the proposed lender, the liquidity and financial resources of the group would be significantly enhanced,” said the statement.
“Upon the facility becoming available for drawing, it is the intention of the receivers that the proceeds will be used to finance the general corporate funding requirements and general working capital of the group.”
After considering the terms of the offer, the receivers said they were satisfied the terms were in the best interests of the company and its shareholders.
The receivers said they had therefore entered into an exclusivity agreement with Trillion, although they said no former proposal had yet been made.
The definitive terms of the offer are subject to further negotiation between Trillion and the receivers, and Ernst & Young said they would update the market in due course.
In the meantime, shares in BIH remain suspended on the Hong Kong Stock Exchange.