By Paul Nicholson
February 13 – Birmingham International Holdings Limited (BIHH), the parent company of Birmingham City Football Club, is to sell 12% of its shares to Chinese advertising firm Beijing Triumph International Media Advertising Co for HK$45 million (£3.5 million).
The deal values the football club at £29 million, a big drop from the £80 million valuation Hong Kong businessman Carson Yeung bought into the club for in 2007 when it was still in the English Premier League.
The news was first announced to the Hong Kong Stock Exchange and a statement on the club website said: “An announcement has today been formally made to the Hong Kong Stock Exchange whereby BIHL entered into an agreement with a third party to sell 12% of its share in Birmingham City PLC…
“It is believed that the arrangement will aid BIHL in raising further capital by utilising the third party’s connections in the Chinese market.”
The new shareholder will have the right to name two shareholder to the board of BIHL and the football club.
BIHL, listed on the Hong Kong Stock Exchange, was suspended until a week ago but saw a dramatic 34% drop in its share price when trading resumed.
It was the first trading on the stock exchange since the arrest of former club chairman Yeung in June 2011. Yeung is currently awating the outcome of a money laundering court case against him in Hong Kong. He denies all the charges. The verdict is expected on February 28.
Birmingham City won the English League Cup in 2011, beating Arsenal at Wembley, but were relegated from the Premier League to the second-tier Championship in the same season.
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