As the protests continue to rumble on in Hong Kong, the economy there shows signs of further weakening. While the Hong Kong stock market is as yet to be affected, various financial news outlets have spoken of potential investor flight from the former colony as long-term prospects grow increasingly bleak. What could this mean for Birmingham Sports Holdings and by extension its subsidiary Birmingham City FC?
The rumour season is once again in full swing on social media, with rumours not just of impending incomings and exits at Blues but talk of potential changes in ownership. None of these rumours have any basis in fact as it stands – I wrote this article to explain why Blues won’t be sold any time soon.
In the fallout from everything that happened on Thursday one of the most common questions I’ve been asked what I know about the motives of the owners of Birmingham City.
Documents from Companies House confirm that a new subsidiary of Birmingham Sports Holdings has been created in the UK in the last fortnight which looks to be specifically to complete the sale of the stadium. This confirms previous thoughts that the club were looking to make moves to improve its standing for P&S purposes.
Birmingham Sports Holdings confirmed a couple of board room changes to the Hong Kong Stock Exchange yesterday. The announcement confirmed that Anita Chan Yuk Yee, who was both executive director and company secretary of the holding company has been replaced.
While Blues secured their Championship status for another year by winning away at Rotherham on Monday, Birmingham Sports Holdings have been doing what it can to secure its own financial status on the Hong Kong stock exchange.
The dust has now settled after the big news of Birmingham City being sanctioned with a nine-point deduction for breaching Profit and Sustainability rules. The questions now have to be asked as to how Birmingham City got into the mess it did and how it can ensure it does not happen again.
Just prior to announcing their interim results on Thursday, Birmingham Sports Holdings also announced a rights issue in an attempt to raise HK$297.7million. The purpose of the rights issue is to reduce the frightening levels of borrowing within the company and to provide more working capital to keep the company going.
Blues’ final match of 2018 finished in a dour draw yesterday to bring what has most things considered been a successful year for the club. The turn of a new year is a time for reflection on what has passed and thoughts for the future, and in that vein I thought I would share mine.
Birmingham Sports Holdings today announced to the Stock Exchange of Hong Kong that Trillion Trophy Asia have extended a HK$250million loan facility for a further two years. The loan was due to elapse on December 21, 2018 but both parties have agreed to extend the facility and its loan repayment period.