Two consecutive days of share price rises have pushed the stock market capitalisation of Birmingham Sports Holdings to £378M as of close of play on Friday. It seems an insanely high figure for a company which makes the majority of its revenue via Blues. In today’s piece I’ve taken a deep dive into just what else BSH does to try to make some sense of what is happening.
It might be relegation worries for Birmingham City at St Andrew’s, but in the Hong Kong it’s very much business as usual for Birmingham Sports Holdings. The HKSE listed company announced to shareholders that it was revising its profit warning upwards to around £7m for the six months to December 31, 2020 – and this came on the back of a share price rise which now values the company at close to £320M.
As Birmingham City are now in the bottom three of the Championship, the more worried members of the fan base are talking about relegation and the implied financial Armageddon that comes with it. With this in mind I have written this piece to explain what Administration really is – and why it’s unlikely as things stand to happen to Birmingham City.
Last week I wrote an article to demonstrate the convoluted nature of the ownership of Birmingham City Football Club, and also to show that what happens on the pitch doesn’t necessarily affect the amount of money the owners make off of it. In this follow-up piece I want to explain to people more about the Hong Kong stock listing and how Birmingham Sports Holdings is valued so highly.
On Friday, I published a lengthy article outlining just how tangled a web the ownership of Birmingham City FC is. In this article I am concentrating on new shareholders in the club Oriental Rainbow Investments Ltd – and why their investment is indicative of issues the club faces.
The sale of 21.64% of Birmingham City plc was approved by shareholders at an Extraordinary General Meeting of Birmingham Sports Holdings yesterday morning in Hong Kong.
Birmingham Sports Holdings confirmed in an announcement on Monday to the Hong Kong Stock Exchange the date of an Extraordinary General Meeting to approve the partial sale of BCFC to Oriental Rainbows Ltd. The sale would see Chinese-Cambodian businessman Vong Pech become the largest shareholder in the club.
Birmingham Sports Holdings broke the news on Friday afternoon that they are proposing to sell a 25% stake in BCFC to Oriental Rainbow Investment Ltd, a British Virgin Islands investment vehicle owned by current BSH shareholder Vong Pech. The deal will see Vong Pech become the largest shareholder in the club among other changes.
Birmingham Sports Holdings released their accounts for the year ending June 30, 2020 on Wednesday afternoon. The results confirmed that once again the company had made a loss – although not as great as in previous years. However, coronavirus has clearly had an impact with massively increased borrowing.
Replies were finally received last week by Blues fans who had emailed the Stock Exchange of Hong Kong complaining about omissions made by Birmingham Sports Holdings from their accounts as organised by 1875. The form reply confirmed that BSH were now compliant, leaving fans scratching their head wondering if the scheme worked.