Birmingham City: Owners enter exclusive talks to sell Championship club
- Published
Birmingham City have faced an uncertain future for some time
Birmingham City's owners say that they have entered a period of exclusive negotiations to sell the Championship club.
China-based Birmingham Sports Holdings Limited made the announcement via the Hong Kong Stock Exchange.
Two letters of intent have been entered into with a potential buyer.
The deal would also include the purchase of the club's St Andrew's stadium.
"The club's owner, Birmingham Sports Holdings Limited, has announced on the Hong Kong Stock Exchange that two letters of intent have been entered into with a potential purchaser," a club statement said.
"This is in relation to the exclusive negotiations of two potential transactions. One transaction would involve the disposal of 24% of the shares in Birmingham City PLC by Birmingham Sports Holdings Limited.
"The other transaction would involve the disposal of 21.64% of the shares in Birmingham City PLC by Oriental Rainbow Investments Limited and the entire issued share capital of Birmingham City Stadium Limited by Oriental Rainbow Investments Limited and Achiever Global Group Limited.
"The parties involved will now enter a period of exclusive negotiation to agree the final terms of the transactions which will formulate the Definitive Agreements. The Definitive Agreements are expected to be entered into within two months of the date of the letters of intent, at which time the potential purchaser will also be announced."
The club announced in January that its future was under discussion with regard to a "proposed investment deal".
In February, Birmingham City and a "number of individuals" were charged by the English Football League with alleged rule breaches as a result of an investigation into a takeover bid.
The EFL said "sufficient evidence" exists to issue charges of misconduct.
Those charges allege that a number people were allowed to act as 'relevant persons' without EFL approval.
There are also charges alleging the passing over of control of the club happened without requisite approval.
There was an approach to acquire ownership of the club by Paul Richardson and Maxi Lopez, which came to an end in December, and separate negotiations with unnamed potential investors, but the EFL has not confirmed the identities of anyone involved in the case.
'Cautious optimism about a brighter future'
Analysis - 成人论坛 Radio WM's Richard Wilford
"Although they have not been named in the club's announcement it is reasonable to assume that the potential purchasers are Often Partisan Limited, a group fronted by Blues-supporting businessman Jeremy Dale.
"He has been in regular attendance at games, including the Easter Monday fixture against Stoke City at St Andrew's. The letters of intent emerged within 48 hours of that match.
"Dale and his investors have kept a low profile since initially being linked with the club, not craving the publicity that surrounded the ill-fated Maxco bid for Birmingham City earlier in the season.
"With two months of exclusivity to complete the purchase of the club there is now a cautious optimism among supporters that there is a brighter future ahead."