Birmingham International Holdings Limited are in big trouble after their share price fell again, leaving them with a total value of below £20 million.
The holding company’s value is plummeting and they seem unable to do anything about it. They have been unable to bring in new money as their shares continue to be worth less and less.
They have also been unable to off load the club which would allow them to put the money from the sale into other businesses, thus bringing the saga to a close. The sale of the club, in parts, was blocked by the Hong Kong stock exchange.
BIHL were worth around £46 million in the summer, which now seems a long way away for the company. It is no surprise the shares are falling, with large bond conversations taking place and the markets in Asia seeing a general decline.
Fears over a slowing economy and the spread of the Ebola virus have even been shown to have an effect on world markets.
BIHL seem like they need to raise capital to raise the value of their business, does this mean that they are to become far less likely to be rejecting any bids for our prized players in the next transfer window?
Players like Demarai gray and Koby Arthur have been the focus of increased scouting visits. News of the financial troubles in Hong Kong will be music to these bigger clubs ears.
Panos Pavlakis met with our representatives this week and informally discussed some issues with them. Our question was to what extent they were prepared to fend off these bids for Gray. It was understood from his answer that these players still have a price, although they would no longer be sold out of necessity.
Birmingham’s financial problem’s did stem mainly from inflated wages of players from the McLeish era, as the club needed to offset those loses with player sales. Now could share price loses be offset by player sales?
What do you think?
For business enquires please click Here
Vital Birmingham on:
Vital Birmingham on:
Join Vital Birmingham
It’s easy to REGISTER HERE, simply click the link and enjoy getting involved!
