This ad will auto close in 10 seconds

Birmingham City in deal over possible takeover

Last Updated: Thursday, August 20, 2009 - 20:04

London: Birmingham City said Hong Kong businessman Carson Yeung`s investment company, Grandtop International Holdings, has placed a deposit with a view to making an offer for the Premier League football club.

"Grandtop, the holder of an existing 29.9 percent interest in the issued share capital of Birmingham, has put down a deposit of 3 million pounds with a view to making an offer for the entire issued share capital of the company other than the shares in Birmingham already held by Grandtop," Birmingham said in a statement on Thursday.

The potential offer of 1 pound per share is in respect of 40.8 million shares -- or around 50 percent of Birmingham`s issued share capital -- which would value Birmingham City at roughly 81.5 million pounds.

The recently-promoted club said the deposit was a surety for Grandtop`s ability and intention to make an offer, without which the club would be unable to commit resources to considering an offer.
If an offer is agreed the deposit will be transferred to a receiving agent to be used as part of the payment to accepting shareholders, said the club.

Grandtop, which is 13.7 percent owned by billionaire Yeung, took a 29.9 percent stake in the club in 2007 in what was supposed to be a precursor to a full takeover.

Shares in Birmingham were trading at 71 pence, up 46.4 percent, at 2:20 p.m., valuing the business at just under 58 million pounds.

Earlier this month Birmingham City said the issue of funding would be a major factor in determining how the company responds to the move after a previous approach by Yeung fell through in 2007.

Bureau Report

First Published: Thursday, August 20, 2009 - 20:04
comments powered by Disqus