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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Good news let’s hope it’s not another false dawn don’t think it is we, could be looking up for once rather than with pessimism kro
It all sounds promising. Lets hope they are loaded and we can in the near future rid ourselves of these shitty owners.
Let’s hope it’s the start of the demise of BSHL within Blues. Let’s hope these investors are in it for the long haul. KRO #BSHLOUT
It’s my understanding that if this deal is successful then the new owners are mandated to buy the whole company after a certain amount of time .Can’t remember what it is.am I correct in that?
They are buying the most unique club in europe if not the world.The stadium needs major repair perhaps till the end of the year over 3 years out of use.The training ground has suffered major fire damage and is unusable no information how bad or when repairs commence or if it will ok for pre season.Faceless owners in debt northwards of 110 million pounds.EFL investigations numbers 2 one investigating an owner who says he isnt.Other clubs attract headlines about their many managers but blues have had three prospective owners in 9 months typical blues.We have a brand new manager making some mistakes but would of it been better if he made those mistakes in league 1 or 2 then come to us.Training staff who at least one still taking their fa badges.But we have brilliant personal who besides all these problems rumour have it are up for a business award they have kept their heads whilst all around others were loosing theirs.The hard core fan base despite all these problems and 5+ seasons of relegation battles still turn up at St Andrews and fill the away ends where ever blues play.So Ihope the takeover goes through. But they are aware of the massive task ahead. Heres hoping for a brighter future.
Still feel there are lots of twists and turns ahead, these owners are not to be trusted
Supported blues since 1955 and although I live on the south coast I still get to some games. Let’s have English owners for our teams not just get rich quick merchants !!