Birmingham City FC receives bid approach

BIRMINGHAM City is the latest English Premiership soccer club to become the subject of takeover speculation.

The club, co-owned by Ann Summers owner David Gold and Sunday Sport publisher, David Sullivan, confirmed to the London Stock Exchange, yesterday, that it had received an approach. The statement added that negotiations were at a “very preliminary stage” and that there is “no certainty that a transaction will result from the approach”.

However, auditors are expected at the club this week to carry out due diligence and according to reports, the club’s owners have signed confidentiality agreements after already agreeing to the sale “because the buyer is prepared to pay well over market value”.

The rumours suggest that the potential buyer is a Far East-based businessman willing to spend £70 million (€103.2m) on the club.

Birmingham, which has just been promoted to the Premiership after one season in the Championship, recently reported a £3.4m pre-tax profit for the half-year to the end of February. However, its season out of the top flight is expected to result in a pre-tax loss for the full year. The club should be back in profit next year thanks to a direct £30m boost from just being in the

Premiership — officially the richest league in European football.

English football has been rife with takeovers of late. Already this year, Wolverhampton Wanderers, West Ham United and Liverpool have changed hands, while only last week British sportswear millionaire Mike Ashley agreed a £134m deal to take control of Newcastle United.

Manchester City is currently in takeover talks and Arsenal’s board is likely to change its stance and listen to US investors who want to buy into the London club. Birmingham’s larger city rivals, Aston Villa, meanwhile, were bought out last year by US billionaire, Randy Lerner.