Chinese Stalk Birmingham City

A Chinese property company stalking Birmingham City has called for a shareholder meeting to bring Steve McManaman, the former Real Madrid, Liverpool and England winger, and Fan Zhi Yi, former China captain, on to the board of directors..

Grandtop International Holdings, owned and run by property mogul Carson Yeung Ka Sing, wants the two former footballers on the board following his purchase last year of a 29.9 per cent stake in the Birmingham club.

The request is however doomed to failure as the Birminghams other owners, led by David Sullivan and brothers David and Ralph Gold, and its directors headed by Karren Brady vowed today to use their combined 47.1 per cent holding to veto the proposals.

Relations between the clubs current owners and Carson Yeung have soured since December when the board said it had terminated takeover talks six months after the Mr Yeung first approached the club to discuss a possible offer.

Today Birminghams board said it would not support Grandtops latest request to put the two ex footballers on its board claiming it does not believe that the proposed appointments are in the best interests of the company.

The clubs main asset is its stadium which it owns as a freehold. The clubs training ground is held on a long leasehold with about 90 years remaining and thought to be worth several million pounds. Together they make up the vast bulk of Birminghams fixed assets, valued at £38 million at its August 31 year-end.

Birmingham City last recorded net debts of nearly £24 million. Birmingham City shares were unchanged today at 31 1/2p giving it a market value of £25.7 million.

There are plans to redevelop the clubs stadium but no formal decision has yet been made on whether the club will sell its existing site let alone where it will move to.

Mr McManaman was made an executive directors of Mr Yeungs Grandtop International company last June. Late last year Mr Zhi Li, the first Chinese player to move to England with Crystal Palace, joined Grandtops payroll.

Mr Yeung, a Hong Kong-based businessman, has made a fortune developing gambling resorts in Macau, the former Portuguese colony now ruled by China, and from investments in oil and gas projects. He owns Hong Kong Rangers, a first divsion side in the former British colony.

Mr Yeung bought his 29.9 per cent stake in the club at the end of June after buying stakes of 14.8 per cent each from David Sullivan and the Gold brothers and small holdings from Ms Brady and Mr Bannister, the clubs finance director.

Mr Yeung missed two deadlines for making a formal offer for the rest of the companys shares as the onset of the credit crunch made it difficult for him to tie down finance.

On 20 December the Birmingham City board terminated talks claiming they were no longer confident in Grandtops ability to make an offer.

Birmingham City is being advised by brokers at Shore Capital. Grandtop Holdings is taking financial advice from Seymour Pierce.

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