Possible changes to the ownership of Birmingham City FC have been revealed. Birmingham Sports Holdings Limited (BSHL) today announced to the Hong Kong Stock Exchange a prospective deal to sell part of the club.
In short, they announced that two letters of intent had been signed with a prospective new investor. The first concerned the potential sale of approximately 24% of the shares in Birmingham City PLC (BCPLC), currently owned by BSHL, to the prospective new investor. The second concerned the potential sale of the 21.64% of shares in BCPLC currently owned by Oriental Rainbow Investments (ORI) and 100% of the shares in Birmingham City Stadium Limited (which owns St. Andrew’s) to the prospective new investor.
The current ownership, to the best of our knowledge, is shown in the following diagram:
If the deal goes announced today goes ahead, then the ownership would look something like this:
The new investor would own approximately 45.64% of the club and 100% of St. Andrew’s. BSHL’s share of the club would fall to 51%. And Vong Pech’s effective share of the club would fall from about 39% to about 12%.
Things are not done yet though. The announcement makes it clear that there is a two-month exclusivity period to conclude a deal which will require the approval and consent of the English Football League. If the deal does go ahead both parts of the deal described above will progress simultaneously. The new investor will pay a cash sum and a bonus if Blues are promoted to the Premier League (presumably within a certain amount of time).
The announcement also says that any final agreement will specify “management, financing and other arrangements of the Club”. This would suggest that BSHL are clearly very mindful of the recent EFL charges against Maxco following the unsuccessful negotiations with Paul Richardson and his colleagues earlier this season.
The announcement does not comment on any timescale for BSHL disposing of the remaining 51% of the club.
Whilst not yet a definitive agreement, Blues Trust views this development as a significant step forward towards selling the club and hopes for a positive outcome in the next couple of months.
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