Yeung moves closer to Birmingham takeover

Hong Kong-based millionaire Carson Yeung moved closer to taking over Birmingham City after paying a three million pounds (3.4 million euros) deposit with a view to making an offer for the Premier League club.

Yeung’s Grandtop International Holdings, which holds a 29.9 percent stake in Birmingham, has entered into an agreement with City by placing a substantial deposit which could lead to a takeover worth around 81.5 million pounds (94.4 million euros).

Yeung had looked set to bid for the club two years ago but an offer failed to materialise, prompting the current owners to challenge him to prove he had the financial muscle to make a firm approach.

However a statement from Birmingham to the Stock Exchange on Thursday said: “The board of Birmingham announces that on 20 August 2009 it entered into an escrow agreement with Grandtop International Holdings Limited, the holder of an existing 29.9 percent interest in the issued share capital of Birmingham.

“Under this agreement, Grandtop has put down a deposit of three million pounds with a view to making an offer for the entire issued share capital of the company.

“The deposit is a surety for Grandtop’s ability and intention to make an offer, without which the company was unable to commit resources to considering an offer.”

Majority shareholders David Sullivan and David and Ralph Gold have always maintained they would not sell the club unless they were confident it was going into safe hands.

Birmingham’s statement confirmed Grandtop must either announce a firm intention to make an offer by October 1 or declare unconditional interest by October 30 or risk losing the deposit.

The statement said: “The signing of the escrow agreement is the first step towards a potential offer by Grandtop and there can be no guarantee that an offer will be announced by Grandtop or that an offer, if made, would be successful.

“Grandtop confirms that any offer for Birmingham would be made only in cash. This announcement has been made with the consent of Grandtop.”