Page last updated at 13:30 GMT, Thursday, 20 August 2009 14:30 UK

Yeung puts deposit on Birmingham

Carson Yeung
Yeung is Birmingham's largest single shareholder with a 29.9% stake

Hong Kong-based businessman Carson Yeung has put down a £3m ($4.96m) deposit with a view to taking over Birmingham City football club.

Mr Yeung's Grandtop International Holdings, which owns a 29.9% stake in the club, has made the payment.

The £3m deposit is a guarantee for Grandtop's ability and intention to make an offer for the Midlands club.

An offer for the complete shareholding would value the English Premier League club at approximately £81.5m.

Last week Birmingham confirmed that there had been a takeover approach from Grandtop.

'First step'

The £3m payment will remain with Birmingham City even if Grandtop does not continue with a full takeover.

The deadline for Mr Yeung to make any offer is by 1 October.

Mr Yeung's firm said that the deposit move is "the first step towards a potential offer by Grandtop" but that "there can be no guarantee that an offer will be announced by Grandtop or that an offer, if made, would be successful".

The potential offer of £1 a share is in respect of 40.8 million shares - or around half of Birmingham's issued share capital - which would value the club at roughly £81.5m.

Grandtop, which bought an initial 29.9% stake in June 2007 but failed to complete a buyout, also confirmed that any offer for Birmingham would be made only in cash.

Mr Yeung was heavily criticised by the Birmingham board for not completely buying out chairman David Gold and co-owner David Sullivan, who terminated discussions with Grandtop in December 2007.

The Hong Kong businessman had been set a deadline of 21 December 2007 to complete his buy-out, but the Blues released a statement to the Stock Exchange on 20 December 2007 to announce that discussions had been terminated.



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SEE ALSO
Yeung in Birmingham takeover bid
12 Aug 09 |  Birmingham
Yeung still keen on Blues buy-out
26 May 08 |  Birmingham
Birmingham terminate Yeung talks
21 Dec 07 |  Birmingham
Yeung buys major Birmingham stake
27 Jun 07 |  Birmingham
Yeung takes stake in Birmingham
16 Jul 07 |  Birmingham

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