Birmingham City shareholder Vong Pech is set to increase his stake in the club by purchasing 25% in a £5.4 million deal. 

The Cambodian businessman owns a 26% stake in Birmingham Sports Holdings, the company that bought the club in 2007 – though they were known as Grandtop International Holdings Limited at the time.

A statement from the Hong Kong Stock Exchange has revealed that Pech has agreed to purchase a 25% stake in the club for £5.4 million.

It is understood that the deal will be subject to approval from shareholders, while further deals may follow.

In the statement, the Championship outfit have indicated they plan to use the money to repay debt and have added that they're currently exploring other strategies to help with the financial burden of running the club.

The statement also indicated that the Blues owe their parent company £110 million, with Pech taking on 21.64% of that loan.

On the pitch, Birmingham have made a strong start to the season under new boss Aitor Karanka as they're unbeaten in the Championship and have taken six points from their first four games.

That form has left them eighth heading into the season's first international break, with a visit from Sheffield Wednesday awaiting them next weekend.

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The Verdict

This statement from the Hong Kong Stock Exchange has provided some insight into what is going on behind the scenes at Birmingham.

It appears Pech is set to take on a larger stake in the club and that further deals may follow in the future.

The indication that the Blues are assessing other strategic options to help with the running of the club would suggest this may not be the only deal done.

How, if at all, this will impact things on the pitch remains to be seen.