It has today been confirmed that Cambodian businessman Vong Pech has bought a 21.64% per cent stake in Birmingham City, for around £5.4m.
The deal to the Blues shareholder has been in the pipeline for a few months now, and an update shared on the Hong Kong Stock Exchange revealed that it has now gone through.
As well as that, the news today, shared by Birmingham Live, stated how the football club owe Birmingham Sports Holdings, their Hong Kong parent company, £110m.
Further details also explained how Pech will have extra responsibility at Blues following this deal going through. The businessman must cover 75 per cent of the club’s losses whilst Blues remains outside the Premier League, until 2023.
Additionally, his 21.64% stake means he takes on that amount of the £110m loan that’s due.
On the pitch, Blues are enduring another tough season in the Championship. Aitor Karanka’s side are currently 18th in the Championship, just seven points above the relegation zone.
They are back in action when they take on Blackburn Rovers at St. Andrew’s on Saturday.
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This is an interesting development involving Blues, even if it’s something that was first suggested a few months ago.
Pech now has a fairly significant stake in the club, and it will be intriguing to see if he adds to that in the future, and then what his long-term plans are.
In the bigger picture, Blues’ financial position doesn’t seem great, and more plans will have to be made moving forward, as promotion to the Premier League, which would solve any problems, isn’t going to happen.
Thoughts? Let us know in the comments below.