Often Partisan

BIH Appoint Financial Advisors

The Receivers of Birmingham International Holdings have today informed the Stock Exchange that they have appointed Goldin Financial as Financial Advisors to the company.

The announcement confirms that Goldin Financial are to advise on the preservation of value of the company, to advise on the structure and terms of invitations for any proposals to preserve the value of the company and to review any such proposals.

Goldin Financial hold a Type 6 SFC licence – as outlined here on the SFC website this means that they can act as sponsor for a listing applicant in an initial public offering (IPO), advising on the Codes on Takeovers and Mergers and Share Repurchases, and advise on listing company compliance issues.

I think this is the first step towards either bringing in investment into BIH or the sale of BCFC. The announcement seems to say that Goldin would take care of the tender process that I mentioned in my video on Friday – that they would be the ones to put together what the tender offer was and would look at what came in. What interests me also is that they can deal with share repurchases – one of the chief problems I think BIH has with respect to bringing in investment is the massive overhang that Carson and Wang Lei have over the company with their conversion shares. If Goldin can reduce the number of shares in circulation then I tihnk it would be easier for investors to make a decision to buy into the company as there is no danger of their shareholding being diluted.

As ever though – we will have to wait and see.

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69 Responses to “BIH Appoint Financial Advisors”

  • Trevor Honnor says:

    Seems that yesterdays actions by CY slowed E&Y down by about 4 seconds.

    Every little helps :)

  • john says:

    and all the time the costs an fees rise dan…….wonders how all this will be paid for, maybe have to sell an asset?

  • john says:

    this to me seems to be heading in the direction of selling an asset while finding a way to preserve the hske listing, there is method to what e an y are doing and I think carson an co can see where its going and are getting rather nervous.

  • Tony E says:

    Seems to me E and Y have bought in another big hitter to line up against CY/PP et al, boy do I hope he loses his action on 1st April and doesn’t wrestle the company away from their control.

  • Mineheadblue says:

    Yay, onwards and upwards…………….!!!

  • Mitchell says:

    What pleases me is that whenever a bully boy threat comes from CY, E&Y come back immediately with a positive response. No pushover now Blues fans.

    • Mickey07 says:

      Pannu the bully boy getting bullied..fantastic seems like they e&y are plodding on and couldn’t give a shite what pannu and yeung do or think keep listening for that knock on the door Pete.

  • steverusselluk says:

    While I don’t disagree with the article, I think it’s worth pointing out that this is almost certainly a direct response to the summons. In that statement E&Y said ‘The Receivers are now seeking legal
    advice regarding the Summons and are taking all necessary and reasonable steps to dismiss the
    Summons. The Receivers will take all steps as they consider appropriate to preserve the value and
    protect the interests of the Company and the Shareholders as a whole. The Receivers will keep the
    Shareholders and potential investors informed of any material development in connection with the
    Summons by way of further announcement(s) as and when appropriate’.

    So in simple terms, it’s now more difficult for Carson to argue that E&Y are not acting in his interests as a shareholder…as there’s now yet another 3rd party acting to ensure that happens.

    They’ve acted on the basis of some probably cautious legal advice, and probably taken a prudent step.

  • fingles says:

    Do BIHL have an office, and if they do who is occupying it?

    • Mickey07 says:

      I imagine pannu and co are not allowed entry to them anymore due to investigations by EY,could you confirm this dan?

    • almajir says:

      Yes they do – I’ve posted pics of me visiting it at least twice.

      I’m guessing the receivers are working there…

  • BigAl says:

    Interesting development, with regard to bringing in investment, the problem is that you have two feuding factions, pro Yeung shareholders/directors, and anti Yeung shareholder/directors.No one will want to invest whilst this feud is ongoing, additionally Yeung is a convicted money launderer, who would want to invest while he and his so called proposed directors are around. Could it be that E/Y have already found something to sink Yeung, Pannu and compatriots.E/Y with this action don,t seem overly concerned with Yeung,s attempt to remove them.This begs the question could this be a serious attempt to get BCFC sold, we just don,t know.

    The only way to increase the value of BIHL and its asset BCFC, is get the club moving upwards hopefully into the premiership, this takes a lot of money, and if I was an interested investor I would want sole control of the company to achieve it. It is not going happen unless Yeung is forced to sell his stake.As I said above perhaps E/Y already have a plan to achieve this.Things seem to be moving at a quicker pace now through the receivers intervention , it is going to be an interesting few weeks and let us hope we will see the end of 4 years of misery under Yeung,s ownership.

    • PeteBaldwin says:

      Why would anyone want to buy BIHL though when their only asset is BCFC. You’d just buy BCFC……

  • HK Dave says:

    Dilute Carson’s share is next step.
    If Carson doesn’t pay up for the share dilute, then obviously, his influence on BCFC’s decision as a shareholder is minimized. However, its also a dangerous strategy as there’s noone interested in buying us yet…

  • tgeejay says:

    I woudn’t call the league cup win misery, maybe most of the rest though!

    • BigAl says:

      tgeejay, Agreed perhaps not the whole 4 years , the European games were good as well.

      Yeung over a cliff hanging onto a tree root for dear life , wish the bloody root would snap!

      Perhaps E/Y have a saw to make it happen.

  • duchess says:

    When will everyone stop trying to figure it out??….

    If I wanted to launder my dirty money or my associates dirty money I would buy a football club, lots of high profile high value transactions! player sales, gate receipts, agent fees, TV revenue, prize money it would be so easy to pass through some cash without anyone raising an eyebrow!

    Obviously Carsons bum is well and truly twitching…. I just cant wait to see what he is hiding!?

    And more more importantly EY WILL uncover it, in the words of Dog in Two Smoking Barrels…

    We’ll find ya… We’ll find ya!!

    • Agent McLeish says:

      It’ll all come out in the wash.

    • Flying Doctor says:

      If I wanted to launder my dirty money or my associates dirty money I would buy a football club, lots of high profile high value transactions! player sales, gate receipts, agent fees, TV revenue, prize money it would be so easy to pass through some cash without anyone raising an eyebrow!

      If you were a complete idiot, you’d use an English football club to launder money. Why use something that high profile and all the attention it would attract to do illegal activity? But then. Carson has always come across as an idiot from day 1.

  • andy says:

    Dan, every time you mention the word sale of the football club hopes get raised yet countless times a great kick in the teeth happens. Lets face it, Carson has no intention of selling Blues and he will do his utmost to make sure a sale does not happen. Can he do this from behind bars? Maybe he genuinely loves Birmingham City and if he does, surely he should do the right thing and let go.

    • Smudge says:

      Andy, Read what Duchess writes above probably goes a little way to explaining why CY does not want to sell the club. It is certainly not out of love of BCFC or football in general. It i think always been about making money in the easiest way possible and possibly covering dubious actions. That is only my opinion but I think it’s an opinion shared by many.

  • Weoley Blue says:

    Dan are your contacts in HK giving you any indication that this could be a significant step towards a. sinking CY, PP1 & co. for good? and b. A sale of BCFC now highly likely?

    Happy that E&Y seem relaxed about the summons and almost treat it with contempt by moving things on. Let’s hope things can now move at a decent pace to get us in a position to move onwards and upwards.

    Could E&Y have dug something up already about CY & his cronies…? Thanks for updates as always mate

  • rhees says:

    Its looking as if the appointment of E Y is the best thing to happen to bcfc since the carling cup

  • Art says:

    Sorry to say I don’t think for a moment CY loves the club.

    It’s all about money and nothing else matters- I suspect he owes a few quid to some very unsavoury characters.

    Looking over his shoulder will dominate his life.

  • andy says:

    Yes what Duchess says does is very plausible I agree.

  • AndyP says:

    Rolling back the clock about 18 months ago before Carson got sent down ,and on one of the very few occasions PP did make a statement through the club,he did say that Carson did realise he had to sell the club.What has changed ?.I think he gambled on a not guilty verdict so he could get back as much as possible,now he’s clinging on again waiting for an Aquital ,with PP telling him he’s got a long list of people waiting to stump up the cash he wants.

  • Shirley Blue says:

    So when E&Y present their final bill the costs of this new lot will be built in. As usually happens with Consultants they will cream every penny out of this process that they can. It’s not going to be cheap all this but as long as between them it ends in the club getting sold to a credible buyer then hopefully worth it.

  • davidsbluenose says:

    I don’t think it’s a case of the Consultants (Receivers) creaming every penny out of the club. They were only appointed because of the mess created by CY et al and it’s very expensive to untangle the mess. It now seems clear that the original money to buy the club must have come from questionable sources. But I bet it’s really difficult to follow the audit trail all the way back to the source. The people in the E&Y team will be highly skilled and will be earning big salaries. But don’t blamethem for the high costs of their work. In the words of Cartman – Blame Canada – I mean Blame Carson.

    BTW people talk about the League Cup win being their best day as a Blues fan. For me it was when Darren Carter’s penalty went in and I realised my son would finally see Blues in the top tier.

    • Shirley Blue says:

      I’m with you there. The realisation we were back in the top flight and then stuffing the Vile twice the following season was better than winning the Carling Cup. Plenty will disagree though.

  • bluenose08 says:

    One question can carson be forced into either selling the club or his shares ?

    • almajir says:

      No.

      • Dan H says:

        Dan,

        If E&Y could prove that the purchase of BCFC was due to proceeds of crime could the CY shareholding be seized by the HK court?

        I appreciate that there are appeal proceedings at large but it may be possible to wrestle control away if proven, could you check on this?

        Dan H

  • Agent McLeish says:

    Goldin Financial appear to have three business areas; factoring, wine and real estate. So we can rule out the latter two which leaves factoring. So, one could assume that there are plans to factor the BIHL business?

    • s says:

      Also Financial investment which will serve them well. Preserving the company BIHL that is the plan.

      The Receivers expect to formulate and implement plans to improve the financial position of the
      Company,

      That does not mean selling the club, only as a last resort will that happen.

  • Brian says:

    Dan
    Look We have 2 agendas here CY wants to get as much of is money back has he can. That would mean hanging on to BCFC so that BIH will survive and try to get further investment. But what is the other groups agenda what do they want, I don’t believe they just want to help BCFC

  • AndyP says:

    That is the only option.I know it’s not as simple as this but BIHL can’t support the club, the club can’t support BIHL so there is only one option and the good guys on the board know it.

  • Brian says:

    Dan
    I understand that they won’t to sell, but what will thay get out of it, they don’t own that much of BIH or do they.

    • almajir says:

      Brian

      They own absolutely insignficant amounts of BIH – but if it’s done right they can move on with the company into other businesses. Or… maybe in Panos’ case he might use the sale as a success story and get himself another job in football?

      I think it’s too black and white to think about “how much money will they make off the transaction” – Pannu might seem to think like that but he’s bit of a unique case.

  • Stevie W says:

    This is my take on it now.

    Investors available for both options:

    a) Invest in BIHL, pay CY off with an offer he could not refuse new investors take over BIHL and invest in BCFC whilst increasing its portfolio in alternative business along with resumption of trading.

    b) Sell BCFC as part of a winding up order served on BIHL due to its inability to continue as a going concern.

    All my own opinion but either way I still see April as a significant month and given the actions of today things are moving in the right direction.

    • Gary R says:

      Option B. wouldn’t be a great one, as surely that would mean us getting a points deduction. And for all that say, “I’d take that”. I, personally, wouldn’t. Don’t want a points deduction.

  • John says:

    Can anyone say for sure, that non of the appointed receivers, are related to Carson Yeung ? With all that’s gone on in Hong Kong over the past couple of years, maybe I am paranoid !
    Or is that Pannunoid !!

  • AussieBlue says:

    Seriously Dan: if Goldin opt for the first postulation in your statement:
    “I think this is the first step towards either bringing in investment into BIH or the sale of BCFC” – is the 53% of BIHL that CY camp does not appear to control up for sale? Or does he have allies within that 53%?
    The other way they could get inward investment is a share offer which would dilute existing shareholders’ stakeholding. There’s just under 10 billion 1cent shares issued. Float another 10 billion and Carson’s stake becomes 14% and Wang Lei’s 8.5%. : out-voteable.

    What I’m speculating is that, if investment is brought into BIHL via Goldin instead of selling BCFC outright: we will still have BIHL as owners but with a new board of directors and majority shareholders. It’s all hypothesis but does happen in the business world.

  • Hillfield Blues says:

    Having spent the last week listening to CY holding his own EGM and appointing new directors,attending appeals and ordering summonses to remove them from BIH,what do EY do………? Appoint a financial advisor to help them “assess the merits of offers made from interested parties”……..class,pure class.

    • Shirley Blue says:

      That’s my take on it. One lot of financial advisers apoointing another lot of financial advisers. Personally I think it stinks – they are all just looking after each other to make sure they all get that bit richer.

  • AussieBlue says:

    More like experience, pure experience Hills mate!

    • BigAl says:

      AussieBlue, Just found this on the internet,

      Value dilution describes the reduction in current price of stock due to the increase in the number of shares. This generally occurs when shares are issued in exchange for the purchase of a business, and incremental income from the new business must be at least the return on equity of the old business.When the purchase price includes goodwill, this becomes a higher hurdle to clear.( I would not have thought any goodwill in BIH)

      The theoretical diluted price i.e the price after an increase in the number of shares , can be calculated as.
      ( N x OP) + (N x IP) divided by O + N

      O = original number of shares . OP=current share price, N=number of new shares to be issued, IP= issue price of new shares.
      Owners Share Of The Underlying business.If the new shares are issued for proceeds at least
      equal to the pre-existing price of a share , then there is no negative dilution in the amount recoverable. The old owners just own a smaller piece of a bigger company. However, voting rights at stockholder meetings are decreased.

      All theoretical but interesting. I need a whisky after that ! Obviously these financial advisers know more than us, so lets see what they come up with.Cheers

      • Blue Lizard says:

        My heads just fallen off!!!

      • AussieBlue says:

        You must be related to Stephen Hawking Al! Good work. Dilutions are never popular with existing shareholders but the ‘reduction in voting rights’ is the key thing here, if it happens. CY’s shares could still be worth 6.7 cents or whatever they last closed at; if a new raising could get 6.7 cents a share or more.
        BTW, an old chum had a great algebra formula when I was at ‘skool’ in Brum:
        “The angle of the dangle = the throb of the k**b”

        There’s a few k**bs involved in all this and we know who they are!

        • BigAl says:

          AussieBlue, I am no Stephen Hawking, information readily available on the internet. As you say shareholders unlikely to be in favour of dilution but there again if the Financial Advisers, come up with a plan to increase the value of the company , this could be for the company to diversify into other business opportunities , or the sale of BCFC. They may convince them.

          The problem is and always will be the majority shareholding of Yeung! he does not want to agree to anything the receivers etc come up with. We can only hope that the receivers have already discovered something that will force Yeung to cooperate , he is determined to get them removed so it would seem there is something rotten in the apple barrel that he does not want them to find.

          I did once buy a book in a charity sale for 50p it was on Quantum Pyhsics thinking it may be interesting. After five pages I came up with my own formula BTTIAGDTP, b,llocks to this I am going down the pub! Keep smiling !

          • Hillfield Blues says:

            Dan seemed to think that a deal could be struck with CY on the basis that BIH could keep its listing. Apparently there is a fesible way of doing this.

  • BhamCityJulian says:

    As the plan has moved on a step E&Y must believe that they have found all the skeletons that are there.

  • Raymondo says:

    Thought I made a comment on here but now I can’t find it. Was there something wrong with it?

  • Raymondo says:

    Sorry, found my comment on the previous post about Carson trying to remove the receivers. KRO

  • Ian Ambrose says:

    Waiting see hearing happing on 1st April and May????????????????????????????

  • Adam True Blue says:

    Just had a thought, something that has been puzzing us is how can we afford to keep going until the end of the season or further, the receivers have declared there are enough funds , we know BCFC’s overheads are greater or equal to their revenue and now we have the extra cost of the receivers and financial advisors to factor in, what if… (just summizing) what if there are million’s in the bank, millions that came from the same source as the funds that purchased us, millions that are meant to be a working capital that certain people do not want to surrender because they believe it’s their money and not the company’s which might be just another reason for not letting go, just a thought and no one will know until legitimate accounts are declared. Kro.

  • Raymondo says:

    I think that E & Y already have something on CY that will sink him and his appeal, i.e. proof of his money laundering and that he is in a desperate blue funk over it. They are appointed by the court and duty bound to tell the court. Back to the cells Carson and do your time. You are done for. Perhaps they have something PP can be charged withr as well. Wouldn’t that be something to celebrate? Perhaps they could share a cell and we canwrite to them, giving them our best wishes! Thank God for E & Y and the genius who asked for them to be brought in!

  • […] appointment of Goldin Financial is the next step in the process. Goldin are a type 6 licenced SFC company – which means that […]


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