The announcements can be viewed in full here.
What Cambodia deal?
A few months back, BSH announced a deal whereby an investment project in Cambodia would be reversed into the company. The project involves the building of offices and residential units along with schools in Phnom Penh.
It’s taken a while longer than planned, but the deal has now been progressed far enough to call an EGM to get approval from the shareholders.
What has this got to do with BCFC?
Firstly, a company like this being reversed into BSH means that there is more than one revenue stream for the holding company, lessening their reliance on Birmingham City FC.
It also means that should Paul Suen Cho Hung want to, it is much easier for him to sell BCFC as a separate entity once the two year period promised to the stock exchange is up in October 2018.
Secondly, this purchase means that there is a new person who will be considered as an owner of Birmingham City for the purposes of the owners and directors test in addition to Paul Suen / Trillion Trophy Asia.
This announcement finally puts a name to that person, with Cambodian citizen Vong Pech named as the 100% owner of Graticity Real Estate Development Ltd (GRED), who will own 24.90% of the holding company once the deal is done – and thus about the same percentage of BCFC.
Unfortunately, there is absolutely no detail that I can find out about Mr Vong as it stands – which means we will have to see what emerges as the EGM happens.
Is this good news?
I always think it’s difficult to judge if news is good or bad, but I think there are positives in this if only that it proves Paul Suen can eventually sort a deal – something Carson seemed unable to do.
I personally think it’s further proof that Suen will slowly relinquish public control of the club as the two year deadline approaches; I’m sure that Mr Suen is all to keen to move on to other investment opportunities especially in the light of the recent Chinese moves to restrict the outflow of capital from the country.